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Trade  V eouvnnerce 


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LlV^: 


TRADE  AND  COMMERCE. 

BY  SIMON  LITMAN. 

[Born  Odessa,  Russia,  1873;  A.  B.,  Odessa  Commercial  College,  1892;  Graduate, 
Ecole  des  Sciences  Politiques,  Paris,  1899;  Student,  University  of  Munich,  1899- 
1900;  Dr.  Iur.  Pub.  et  Rer.  Cam.,  University  of  Zurich,  1901;  Lecturer,  Ecole 
Russe  des  Hautes  Etudes  Sociales,  Paris,  1902;  Instructor  in  Commerce,  Uni- 
versity of  California,  1903-1908;  Associate  in  Commerce.  University  of  Illinois, 
1908-1910;  Assistant  Professor  of  Economics,  1910 — ; author  of  several  mono- 
graphs and  periodical  articles  on  labor  problems,  transportation  and  commerce.] 

INTRODUCTION. 


The  business  world  of  today  is  vastly  different  from 
that  in  which  the  merchant  of  old  performed  his  work. 
Were  it  possible  for  him  to  revisit  the  scenes  where  in  the 
long  ago  he  plied  his  craft,  he  would  not  only  be  astounded 
by  the  present  method  of  doing  the  things  he  did,  but  he 
would  be  considerably  perplexed  by  the  many  new  meth- 
ods and  devices,  the  obstacles  and  the  problems  which  today 
are  part  of  that  universal  exchange  known  as  Trade  and 
Commerce.  He  would  find  that  his  successor  and  inheritor 
— the  modern  merchant — had  replaced  the  camel,  the  pack- 
horse,  the  crawling  cart  and  the  little  sailing  craft  with  the 
locomotive,  the  steamer,  the  trolly  car  and  the  motor 
wagon;  he  would  find  that  miracles  were  performed  by 
telegraph  and  telephone,  and  that  altogether  his  descend- 
ants were  almost  complete  masters  of  the  technical  difficul- 
ties of  former  times.  But  he  would  also  find  that  the  great 
changes  and  the  great  gains  have  created  new  problems 
to  meet,  new  difficulties  to  overcome  and  while  these  may 
not  be  as  dangerous  as  those  of  preceding  eras,  they  are 
more  complex,  more  subtle. 

A modern  merchant  need  not  be  a combination  of  ex- 
plorer, soldier,  sailor,  transporter,  peddler,  banker,  whole- 
saler and  retailer,  as  was  the  tradesman  of  old;  but  he 
must  possess  a vast  and  varied  store  of  special  knowledge ; 
without  this  he  cannot  have  an  intelligent  grasp  of  condi- 

e— rv=-i 


tmr/9 


2 


SIMON  LITMAN 


tions  or  ability  to  act  quickly  and  judiciously,  to  compete 
successfully. 

The  magnitude  of  existing  commerce,  the  keenness  of 
today’s  competition  demand  efficiency.  Today  no  one  has 
a monopoly  over  improved  means  of  intercourse;  the  same 
market  can  be  reached,  in  fact,  is  being  reached  from  vari- 
ous quarters,  by  many  manufacturing  and  mercantile  con- 
cerns. The  dealer  of  old,  being  alone  in  the  field,  had  in 
most  instances  but  to  show  his  goods,  to  be  assured  of  a 
sale  and  of  a highly  profitable  return  on  his  venture,  but 
the  merchant  of  today,  having  many  competitors,  must  rely 
mainly  upon  superior  ability. 

By  modern  merchant,  I do  not  mean  the  small  shop- 
keeper whose  horizon  is  bounded  by  the  houses  which  line 
his  street,  or  the  clerk  who  does  not  see  beyond  his  columns 
of  figures,  but  the  enlightened  merchant,  who  is  a neces- 
sary auxiliary  to  the  agriculturer  and  the  manufacturer 
of  a country.  It  is  he  who  under  the  present  economic 
arrangement,  to  a very  large  extent,  drives  the  wheels  of 
industry,  he  who  is  responsible  for  the  ceaseless  activity 
in  mines  and  in  forests,  in  blast  furnaces  and  in  rolling 
mills;  it  is  he  who  leads  a nation  to  its  position  of  indus- 
trial and  commercial  supremacy. 

The  work  of  such  commercial  leaders  is  not  chance 
work,  they  cannot  be  mere  experimentalists;  they  must  be 
fully  equipped  to  perform  their  functions.  Realizing  this 
our  most  advanced  nations  promote  and  encourage  com- 
mercial education.  Germany,  which  was  the  first  to  grasp 
the  significance  of  the  quiet  work  of  the  school  teacher  in 
order  to  be  victorious  in  war,  was  also  the  first  to  under- 
stand the  necessity  for  establishing  a net  work  of  secon- 
dary and  higher  technical  commercial  schools  in  order  to 
conquer  the  world  in  time  of  peace.  It  was  Germany  that 
first  reared  a class  of  trained  manufacturers  and  merchants, 
and  it  was  because  of  their  intelligent  activity  that  she, 


TRADE  AND  COMMERCE 


3 


a country  of  comparatively  poor  resources,  has  achieved 
most  wonderful  results  in  international  trade. 

Commercial  education  teaches  the  future  merchant 
where  the  best  and  the  cheapest  raw  materials  and  other 
commodities  needed  by  his  countrymen  may  be  obtained 
and  where  goods  produced  at  home  are  in  the  greatest  de- 
mand; it  familiarizes  him  with  the  materials  and  tools  of 
trade,  with  the  routes  of  commerce  and  with  the  possibili- 
ties and  limitations  of  modern  means  of  transportation. 
Commercial  education  acquaints  the  merchant  with  the 
tariff  of  his  own  country  as  well  as  with  customs  laws  and 
regulations  of  other  lands;  it  gives  him  a knowledge  of 
the  currency,  of  the  systems  of  weights  and  measures  used 
by  various  nations  of  commercial  importance;  it  instructs 
him  in  commercial  law,  so  that  he  may  know  how  to  pro- 
tect his  rights  and  how  to  avoid  the  usually  expensive  liti- 
gations; it  gives  him  command  over  foreign  languages, 
which  permits  him  to  approach  present  and  prospective 
customers  in  their  tongue,  thereby  winning  their  confi- 
dence and  making  business  friends. 

Commercial  education  teaches,  also,  the  principles  of 
political  economy,  giving  an  insight  into  the  relation 
between  different  factors  of  production,  into  the  laws  of 
exchange,  showing  the  interdependence  between  supply 
and  demand,  cost  and  price,  revealing  the  effects  of  distri- 
bution upon  consumption  and  consumption  upon  produc- 
tion; finally  it  develops  an  aptitude  for  trade,  a desire  to 
work  with  a spirit  of  order  and  initiative,  with  an  under- 
standing that  the  work  is  worth  while,  that  business  suc- 
cess may  be  achieved  without  losing  the  respect  of  fellow 
workers  in  other  lines  of  human  endeavor;  it  develops 
traits  of  thrift  and  of  integrity,  of  consideration  for  the 
needs  and  wants  of  others,  whoever  these  others  may  be 
and  wherever  they  may  dwell. 


4 SIMON  LITMAN 

I.  THE  COMMERCE  OF  THE  PAST. 

The  commerce  of  the  past,  whether  we  consider  it,  as 
it  was  carried  on  in  times  of  antiquity,  in  the  Middle  Ages 
or  during  the  centuries  which  preceded  the  dawn  of  our 
modern  era,  was  so  unlike  the  commerce  of  the  present, 
that  its  study  would  for  us  be  impractical  unless  it  were 
for  the  purpose  of  emphasizing  the  entirely  different  prob- 
lems and  methods  of  present-day  business. 

The  beginnings  of  trade  are  lost  in  antiquity,  but  we 
know  that  in  earliest  communities  barter  did  not  exist,  as 
all  worked  together,  each  helping  the  other,  and  the  prod- 
uct of  joint  labor  was  communal  property.  When  there 
was  a surplus  product,  a natural  desire  arose  to  exchange 
it  for  something  wdiich  the  community  did  not  produce  and 
which  it  seemed  worth  while  to  have. 

In  its  development  the  first  obstacle  commerce  had  to 
overcome  was,  as  far  as  we  are  able  to  judge,  the  feeling 
of  antagonism  which  existed  between  different  communi- 
ties. For  thousands  of  years  they  warred  against  each 
other;  if  they  met,  it  was  only  as  enemies  to  settle  their 
disputes,  their  real  and  their  imaginary  grievances,  to  sat- 
isfy their  lust  for  plunder.  As  the  result  of  their  centuries 
of  animosity  they  could  not  at  first  understand  any  other 
less  antagonistic  relation;  thus  when  trade  first  began,  they 
necessarily  approached  each  other  with  suspicion  and  dis- 
like; it  required  many  centuries  of  gradual  approach 
before  these  feelings  were  eradicated.  When  a new  rela- 
tion, that  of  trade,  appeared  possible,  strangers  began 
meeting  on  the  boundary  lines  of  their  respective  regions 
bringing  their  wares  for  exchange.  Hereditary  suspicion 
made  it  necessary  to  gather  goods  intended  for  exchange 
on  one  spot,  the  market  place,  in  this  way  permitting  a 
careful  inspection  of  every  article  as  well  as  a simultaneous 
transfer  of  commodities  with  the  transfer  of  title  to  them. 
When  more  distant  communities  began  to  participate  in 


TRADE  AND  COMMERCE 


5 


this  exchange,  there  arose  a separate  class  of  dealers,  who' 
took  upon  themselves  the  work  of  bringing  wares  from  one 
locality  to  another.  After  this,  the  overcoming  of  dis- 
tances became  one  of  the  main  considerations  of  trade. 

The  merchant  of  the  past  was  handicapped  by  impass- 
able highways;  the  forest,  the  desert,  the  swamp  and  the 
mountain,  all  conspired  against  him;  nature  met  him  at 
almost  every  step  with  a barrier.  Carrying  goods  from  one 
isolated  center  to  another,  sailing  the  trackless  sea  in  order 
to  reach  far-off  harbors,  were  hazardous  and  laborious  un- 
dertakings; they  required  pluck  and  perseverance,  induce- 
ments of  unusually  large  profits  and  an  unlimited  amount 
of  optimism;  they  required  also  in  case  of  sea  traffic,  some 
nautical  knowledge  on  the  part  of  the  merchant.  The  mer- 
chant of  old  had  no  common  carriers  to  rely  upon  and  there- 
fore he  had  to  provide  and  to  supervise  his  own  transporta- 
tion facilities. 

On  land,  in  some  places  a bridle  pass  permitted  the 
use  of  pack  animals,  in  others  even  such  a pass  did  not 
exist  and  the  muscular  strength  of  man  was  the  only  means 
for  carrying  the  load.  Gradually  improvements  were  in- 
troduced. The  pass  from  continued  use  became  a wagon 
road;  crude  vehicles  were  impressed  into  service  and 
draught  animals  supplanted  beasts  of  burden.  It  is  hard 
for  us  to  realize  what  a step  in  advance  was  the  harness- 
ing of  the  horse  and  its  employment  on  the  battlefields  of 
commerce.  However,  even  the  best  draught  animal  on  a 
first-class  road  accomplishes  comparatively  little  and  is  a 
very  expensive  medium  of  transportation,  entirely  inade- 
quate for  the  overcoming  of  long  distances. 

As  to  sea-commerce,  the  ocean  was  the  same  vast  ex- 
panse that  it  is  today,  but  the  coasts  were  unsurveyed, 
light-houses  and  saving  stations  were  lacking,  and  the  mar- 
iner merchant  on  his  small  sailing  craft,  had  no  compass 
to  guide  him,  no  chart  to  show  him  the  direction  of  winds 
and  currents,  no  instruments  to  warn  him  of  approach- 


6 


SIMON  LITMAN 


ing  storms.  His  journey  was  largely  a matter  of  chance, 
its  long  duration  a series  of  perilous  adventures,  very  un- 
like the  passage  of  a modern  steamer  which  usually  reaches 
her  destination  on  schedule  time. 

Nature’s  barriers  were  not  the  only  ones  that  the  com- 
merce of  the  past  had  to  overcome.  The  trackless  roads 
were  unprotected.  To  the  dangers  of  being  lost,  of  death 
by  starvation  because  of  lack  of  provisions,  was  added  the 
risk  of  attacks  from  nomadic  robbers.  In  the  East,  where 
the  first  important  trading  relations  occurred,  the  war- 
like tribes  of  the  deserts  soon  learned  the  value  of  the 
merchant’s  cargo.  Later,  in  Europe,  it  was  the  feudal 
baron  and  his  hirelings  who  pillaged  and  in  case  of  re- 
sistance assassinated  the  merchant.  On  sea,  the  pirate 
began  his  nefarious  work  at  an  early  era,  and  it  took 
centuries  to  exterminate  him. 

To  meet  such  conditions  the  merchants  resorted  to  mu- 
tual aid  and  protection.  On  land  they  formed  caravans, 
and  on  sea  convoys.  The  merchant  of  old  united  his  forces 
with  those  of  his  fellow  traders  going  in  the  same  direc- 
tion, and  by  combined  strength  created  for  himself  that 
element  of  comparative  security  without  which  no  inter- 
course, no  commerce,  were  possible.  Caravans  became  a 
regular  means  for  conducting  land  trade;  they  developed 
into  a carefully  organized  system.  Those  who  wished  to 
join  a caravan  assembled  on  a certain  date,  at  an  indicat- 
ed spot.  A leader  was  selected  to  whom  all  owed  implicit 
obedience.  In  case  of  large  caravans,  a number  of  sub- 
ordinate officers  were  appointed,  each  having  a specific 
duty  to  perform;  one  attending  to  the  proper  handling 
and  distribution  of  provisions,  another  regulating  the  ar- 
rangements for  the  halt,  a third,  familiar  with  the  coun- 
try to  be  traversed,  acting  as  guide. 

Increased  security  of  the  road,  greater  density  of  pop- 
ulation, introduction  of  modern  transportation  facilities 
tended  towards  eliminating  the  caravan  as  a commercial 


TRADE  AND  COMMERCE 


7 


institution;  at  present  it  exists  but  in  a few  economically; 
undeveloped  countries.  Thus  the  merchants  of  the  north- 
ern shores  of  Africa  continue  to  carry  by  means  of  car- 
avan trade  cheap  manufactured  articles  of  England,  Ger- 
many and  Prance  across  the  Desert  of  Sahara  to  the  peo- 
ple of  Soudan  and  bring  in  return  by  the  same  means 
precious  stones,  pearls,  ivory,  gold,  ostrich  feathers  and 
other  native  products.  Thus,  also,  in  connection  with  the 
musulman  pilgrimages  from  Beirut  and  Damascus  to  Me- 
dina and  Mecca,  we  have  caravans  which  unite  Asia  Minor 
with  the  trading  communities  in  Arabia.  The  magnifi- 
cence and  splendor  which  these  caravans  presented  in  the 
time  of  the  Caliphs  have  largely  disappeared,  as  the  os- 
tensibly religious  aim  of  the  pilgrimages  has  been  over- 
shadowed by  commercialism.  Now  almost  every  pilgrim 
unites  a mercantile  adventure  with  the  obedience  to  the 
Koran  and  he  brings  along  with  his  religious  zeal  and 
enthusiasm  cotton  fabrics,  hardware  and  other  articles, 
which  he  knows  will  find  a ready  market  in  Arabia.  In 
Persia  most  of  the  intercourse  is  also  carried  on  by  cara- 
vans. Having  enumerated  these  few  caravan  routes  and 
having  perhaps  omitted  a number  of  less  significant  ones, 
we  may  leave  the  caravan,  this  venerable  institution  of 
former-day  trade.  All  caravans  are  doomed  to  disappear; 
those  yet  existing  unite  some  of  the  most  densely  pop- 
ulated districts  of  the  Orient,  and  the  wide-awake  mer- 
chants of  England  and  Germany,  realizing  the  possibilities 
of  these  territories,  have  taken  into  their  service  the  civil 
engineer  and  the  surveyor.  In  many  places  where  but 
a few  years  ago  the  camel  reigned  supreme,  may  now  be 
heard  the  whistle  of  the  river  boat  or  the  locomotive  and 
the  click  of  the  telegraph. 

For  protection  at  sea  the  Phoenicians  were  the  first 
to  make  use  of  convoys  when  their  trading  relations  took 
them  out  into  the  Mediterranean,  the  Black  and  the  Red 
seas,  and  into  the  Atlantic  and  Indian  oceans.  Rome 


8 


SIMON  LITMAN 


succeeded  in  suppressing  sea-piracy,  but  with  the  fall  of 
the  Roman  Empire  it  reappeared,  and  in  the  Middle  Ages 
the  danger  of  capture  by  pirates  became  so  great  that 
Venice  forbade  the  maintenance  of  vessels  by  private  in- 
dividuals. The  Venetian  Government  undertook  the  or- 
ganization and  management  of  public  convoys  which  were 
loaned  to  the  highest  bidder.  Convoys  were  maintained 
by  Holland,  England,  the  city  of  Hamburg,  etc.,  as  late 
as  the  seventeenth  and  the  first  half  of  the  eighteenth  cen- 
tury. 

The  use  of  convoys  had  many  disadvantages:  it  placed 
restrictions  upon  the  length  of  stay  in  harbors,  amount 
and  character  of  freight  to  be  carried,  place  of  departure 
and  ultimate  destination.  Because  of  these  disadvantages 
and  the  inability  to  subdue  the  pirates,  peace  treaties  were 
concluded  with  them  in  the  second  half  of  the  eighteenth 
century. 

Modern  shipping  knows  convoys  only  in  times  of  war, 
when  naval  forces  are  occasionally  used  to  protect  the 
merchant  marine  plying  between  harbors  within  the  zone 
of  hostilities. 

With  the  development  of  commercial  relations  it  be- 
came necessary  for  the  merchants  not  only  to  take  wares 
from  place  to  place  but  also  to  reside  in  foreign  countries. 
The  necessity  for  residence  became  especially  urgent  in 
the  Middle  Ages. 

Mediaeval  towns  lived  narrow  clannish  lives,  shut  off 
as  they  were  from  the  outside  world  by  many  natural  and 
artificial  barriers.  A stranger  was  regarded  as  a menace 
to  long-established  customs  and  beliefs,  a danger  to  the 
economic  and  social  stability  of  the  place.  The  appear- 
ance of  a foreigner  often  was  a signal  for  hostile  demon- 
strations. “Down  with  the  intruder!”  commanded  the 
masters  of  guilds  and  their  assistants  who  considered  their 
interests  jeopardized  by  the  coming  of  the  stranger. 
“Down  with  the  foreigner!”  echoed  the  apprentices  and 


TRADE  AND  COMMERCE 


9 


the  Ignorant  crowd  offended  at  the  sight  of  any  one  whose 
walk,  dress  and  manner  of  speech  were  different  from 
those  to  which  they  were  accustomed. 

The  newcomers  were  aware  of  the  harsh  treatment  in 
store  for  them;  of  the  distrust  and  hatred  of  the  native 
population;  of  the  probability  of  uprisings  during  which 
they  would  be  left  to  their  own  resources,  the  authorities 
being  either  unable  or  unwilling  to  interfere;  they  knew 
of  the  non-existence  of  a just,  common  law  which  made 
it  certain  that  in  case  of  dispute  with  a native  their  cause 
would  be  a lost  cause.  Knowing  this  they  dwelt  abroad 
in  entrenched  fortified  settlements;  these  consisted  of  a 
single  structure,  of  a group  of  warehouses,  offices  and  resi- 
dences in  an  enclosure,  or  of  a whole  section  of  a city. 
Such  protected  places  of  abode  were  known  as  factories. 
In  these,  merchants  managed  their  own  affairs  and  admin- 
istered justice  through  their  own  officers,  usually  sent  by 
the  home  government. 

Factories  obtained  certain  rights  and  privileges,  such 
as  the  right  to  occupy  a portion  of  a city,  the  right  of 
self-government,  the  exemption  from  taxation  and  from 
the  jurisdiction  of  local  courts.  These  rights  and  privi- 
leges, including  the  somewhat  doubtful  privilege  of  being 
always  on  the  alert,  always  ready  to  beat  off  mob  attacks, 
were  granted  for  pecuniary  considerations;  in  some  in- 
stances they  were  acquired  by  the  force  of  arms. 

At  present,  in  civilized  countries  the  institution  of  fac- 
tories does  not  exist.  German  traders  do  not  any  longer 
maintain  a fortified  colony  in  the  heart  of  London,  nor 
do  the  English  “ Merchant  Adventurers”  have  their  for- 
tified depots  in  Hamburg  or  Antwerp.  Such  an  institu- 
tion would  neither  be  tolerated  by  the  government  of  a 
civilized  state,  nor  is  its  existence  necessary. 

If  we  wish  to  find  a modern  counterpart  of  an  old  fac- 
tory, we  must  leave  the  beaten  track  of  commerce  and 
go  to  the  barbaric  or  semi-barbaric  countries  of  Africa,  to 


10 


SIMON  LITMAN 


Guinea,  to  Senegal  or  Senegambia,  where  the  merchants 
of  today  labor  under  the  same  difficulties  which  confront- 
ed their  forerunners  in  the  past;  they  live,  as  the  others 
lived,  in  constant  fear  of  attack  by  the  natives  and  their 
only  security  lies  in  their  own  weapons. 

To  fully  appreciate  the  position  of  the  merchants  of 
old  we  must  not  overlook  the  almost  innumerable  tolls  to 
which  they  were  subjected.  Bridges  were  lacking  where 
they  were  most  needed,  but  many  a dry  level  place  could 
boast  of  a bridge  built  for  the  sole  purpose  of  compelling 
people  to  go  over  it  and  to  give  passage  money;  river 
beds  were  not  dredged,  but  ropes  were  stretched  across 
the  streams  to  force  ships  and  barges  to  pay  for  the  re- 
moval of  obstructions.  Those  who  were  strong  enough 
to  exact  tolls  were  limitless  in  their  ingenuity. 

Ostensibly  most  of  the  tolls  were  gathered  in  order  to 
police  the  roads  and  to  keep  them  in  good  repair;  but  in 
reality  the  merchants  received  nothing  in  return  for  the 
heavy  burdens  imposed  upon  them.  Roads  were  always 
in  a wretched  condition,  and  the  complicity  of  the  feudal 
lords  in  the  crimes  of  highway  robbery  excluded  the  possi- 
bility of  any  effective  policing. 

In  addition  to  road  tolls,  every  town  levied  duties  on 
articles  brought  within  its  wTalls,  and  no  trader  could  pass 
a town  without  paying  these  tolls. 

Another  hardship  imposed  upon  the  trader  was  the 
enforced  display  of  goods,  i.  e.,  no  matter  to  what  place 
he  was  bound,  all  towns  along  his  journey  compelled  him 
to  offer  his  wares  for  sale  to  their  inhabitants.  The  wants 
of  the  consumer  were  the  first  considered,  which  was 
natural  enough,  as  the  merchants  were  strangers. 

Many  regulations  were  passed  so  that  the  people  might 
buy  goods  at  low  prices.  If  the  delay  in  a town  meant 
the  impossibility  to  reach  a destination,  the  ruin  of  mer- 
chandise, spoliation,  so  much  the  worse  for  the  merchant. 


TRADE  AND  COMMERCE 


11 


Under  such  conditions  the  risks  of  mercantile  ventures 
were  enormous.  There  was  no  insurance,  and  the  indi- 
vidual trader  was  the  one  who  bore  the  losses. 

The  high  cost  of  transportation — the  result  of  the  use 
of  pack  or  draught  animals  on  poor  highways  and  the 
payment  of  innumerable  and  excessive  tolls  confined  trad- 
ing to  goods  of  comparatively  small  bulk  and  great  value, 
usually  luxuries. 

The  slowness  with  which  goods  were  transported  and 
the  lack  of  proper  means  for  protecting  them  against  at- 
mospheric influences  excluded  perishable  commodities 
while  quackmires,  ruts  and  pitfalls  effectively  checked  the 
shipment  of  breakable  wares. 

Thus  definite  limitations — the  result  of  natural  and  ar- 
tificial conditions — were  placed  upon  the  commerce  of  the 
past. 

II.  EXISTING  COMMERCE. 

Steam  and  electricity  have  united  the  farthermost  cor- 
ners of  the  earth  and  have  brought  the  trading  communi- 
ties of  the  world  together.  These  powers  which  increased 
so  marvelously  the  industrial  efficiency  of  nations,  which 
brought  such  a wonderful  expansion  of  production,  these 
dynamic  agents  revolutionized  also  the  means  of  communi- 
cation and  transportation  and  made  of  the  whole  world 
one  immense  market. 

The  modern  merchant  is  relieved  of  the  technical  man- 
agement of  transportation  facilities;  he  intrusts  his  goods 
to  a common  carrier,  to  a railroad  or  to  a steamship  com- 
pany, which  transfers  the  commodities  with  such  speed 
and  safety  as  would,  but  a few  decades  ago,  have  been 
deemed  impossible.  The  railroad  and  the  steamer  not  only 
insure  security  and  despatch  but  they,  also,  give  regu- 
larity of  service  and  punctuality  of  delivery;  they  permit 
transportation  of  great  masses  of  goods  at  one  time  and 
shipment  of  bulky  and  ponderous  wares.  The  smoothness 


12 


SIMON  LITMAN 


of  the  roadbed,  the  rapidity  with  which  goods  are  handled 
at  the  terminals  and  moved  overland  and  across  the  sea, 
the  use  of  refrigerator  cars  and  cold  storage  steamers  have 
opened  possibilities  for  the  transportation  of  the  most  deli- 
cate and  most  easily  perishable  foodstuffs  and  thereby 
have  created  new  economic  activities  in  various  parts  of 
the  world;  they  have  also  changed  considerably  our  stand- 
ards of  living. 

The  merchant  is  no  longer  in  doubt  as  to  what  it  will 
cost  him  to  bring  goods  from  place  to  place;  he  knows 
the  charges  beforehand  and  can  make  his  calculations  ac- 
cordingly. 

The  risks  of  the  venture  are  insured.  Insurance  rates 
are  moderate  as  the  enforcement  of  law  and  order  has  al- 
most eliminated  dangers  from  the  acts  of  men,  and  those 
from  “the  acts  of  God”  have  been  minimized  by  a better 
knowledge  of  natural  phenomena  and  by  thorough  equip- 
ment to  meet  adverse  conditions. 

The  governments  of  civilized  countries  protect  life  and 
property.  By  means  of  legislative  enactments,  by  police, 
by  the  administration  of  justice,  the  state  affords  security 
against  brigandage  and  other  wrong  doing;  without  this 
security  present-day  commerce  would  be  impossible.  The 
state  stands  ready  to  enforce  law,  and  those  who  conclude 
business  contracts  are  certain  that  these  contracts  will 
be  fulfilled  even  against  the  will  of  those  who  have  con- 
cluded them  in  bad  faith.  On  the  other  hand,  business 
morals  are  much  better  than  they  ever  have  been;  perhaps, 
because  of  the  fact  that  modern  business  men  have  learned 
that  in  this  age  of  rapid  transmission  of  intelligence,  hon- 
esty is  really  the  best  policy.  However  this  may  be,  the 
majority  of  merchants  have  become  trustworthy,  both  in 
their  relations  amongst  themselves  and  in  their  dealings 
with  customers.  The  maxim:  “Let  the  buyer  beware,” 
has  been  buried.  The  best  proofs  of  this  are  the  modern 
methods  of  sales  by  means  of  sample,  pattern,  brand, 


TRADE  AND  COMMERCE 


13 


trade-mark  or  by  simply  designating  a grade  or  standard 
quality;  these  methods  are  necessarily  based  on  reliabil- 
ity. 

Payments  in  many  instances  are  deferred.  Credit  is 
willingly  granted,  partially  because  of  an  increased  con- 
fidence of  man  in  man,  but  to  a very  large  extent  because 
credit  giving  and  credit  taking  have  been  placed  on  a 
much  more  rational  basis.  The  credit  giver  can  easily  as- 
certain the  resources  and  the  character  of  the  credit  seek- 
er. Mercantile  agencies  collect  and  disseminate  data  as 
to  the  financial  standing  of  individuals  and  business  firms. 
Most  of  the  large  houses  have  their  credit  departments 
managed  by  experienced  credit  men.  A national  associa- 
tion of  credit  men  makes  it  possible  to  exchange  views, 
compare  experiences  and  discuss  all  matters  of  importance 
to  its  members. 

The  extension  of  credit  either  through  deferred  pay- 
ments, just  mentioned,  or  through  the  loan  and  debt  credit, 
where  modern  banking  facilities  are  made  use  of,  has  stim- 
ulated business  activities  and  made  possible  an  exchange 
of  commodities  reckoned  in  billions  of  dollars  a year. 

The  magnitude  of  commerce  and  the  impossibility  for 
the  unaided  individual  to  deal  successfully  with  its  prob- 
lems has  led  to  the  formation  of  various  trade-promoting 
organizations,  such  as  chambers  of  commerce  and  boards 
of  trade,  commercial  museums,  export  banks,  export  syn- 
dicates and  companies,  etc. 

Chambers  of  commerce  are  associations  established  by 
business  men  for  the  purpose  of  advancing  local  trade  in- 
terests. They  are  especially  influential  in  large  mercan- 
tile centers,  like  London,  New  York,  Hamburg,  etc.,  where 
their  main  activity  is  directed  towards  developing  foreign 
commerce. 

Chambers  of  commerce  are  of  two  types:  the  French 
and  the  English.  Those  of  the  French  type,  which  is  pre- 
dominant in  France,  in  northern  Germany,  in  Italy,  in 


14 


SIMON  LITMAN 


Austria-Hungary  and  in  a number  of  other  European 
countries,  are  under  strict  governmental  supervision. 
Their  members  are  elected  by  and  from  the  members  of 
the  business  community  where  the  chamber  is  established. 
Membership  is  limited;  the  Paris  Chamber,  the  largest  in 
Prance,  has  only  thirty-six  members,  while  in  other  French 
cities  the  number  varies  from  nine  to  twenty-one.  No 
new  chamber  of  commerce  can  be  organized  without  the 
approval  of  the  Minister  of  Commerce.  The  chambers  of 
commerce  are  supported  by  direct  taxes  levied  upon  busi- 
ness men,  and  their  budgets  are  verified  by  the  Govern- 
ment. The  chambers  have  a number  of  administrative 
functions,  such  as  supervision  over  commercial  schools, 
over  stock  and  produce  exchanges,  etc.,  and  the  Govern- 
ment consults  them  upon  all  matters  of  industry  and  com- 
merce, their  advice  being  carefully  considered  before  the 
passage  of  laws  or  administrative  regulations  bearing  upon 
the  subject. 

The  chambers  of  commerce  of  the  English  type  are 
voluntary,  autonomous  organizations  with  an  unlimited 
number  of  members.  They  are  supported  by  member- 
ship dues  and  are  free  from  governmental  control  or  su- 
pervision. They  are  doing  very  effective  and  valuable 
work  for  the  interest  of  the  localities  where  they  are  es- 
tablished, and  those  of  the  chambers  which  have  sufficient 
influence  and  power,  work  for  the  good  of  the  country  at 
large.  Great  Britain  and  the  United  States  have  cham- 
bers of  commerce  of  this  latter  type. 

Frequently  domestic  chambers  of  commerce  are  es- 
tablished in  foreign  centers  by  merchants  who  reside 
abroad  or  have  business  relations  there.  Usually  they 
are  voluntary  associations,  although  in  some  instances  they 
receive  financial  aid  from  the  home  government.  The 
American  chambers  of  commerce  in  London,  in  Paris  or 
in  Berlin,  the  Italian  chamber  of  commerce  in  San  Fran- 
cisco are  examples  of  such  institutions. 


TRADE  AND  COMMERCE 


15 


In  many  countries  the  chambers  of  commerce  unite 
to  form  a national  organization  whose  object  is  to  acquaint 
itself  with  opinions  on  matters  of  general  commercial 
importance,  to  crystallize  these  views  and  to  present  them 
to  the  Government  in  order  to  influence  legislation.  In 
the  United  States  such  an  organization  is  known  as  the 
National  Board  of  Trade.  Somewhat  similar  in  character 
and  in  functions  is  our  Manufacturers’  Association,  which 
holds  annual  conventions  and  issues  extended  reports. 

Many  branches  of  industry  and  commerce  have  their 
own  national  associations  of  more  or  less  importance;  of 
this  type  in  the  United  States  are  the  National  Associa- 
tion of  Wool  Manufacturers,  the  Bankers’  Association, 
the  Farmers’  Alliance,  etc. 

Commercial  museums  are  of  comparatively  recent  ori- 
gin. They  are  usually  of  a quasi-public  character,  being 
established  and  maintained  either  entirely  by  the  muni- 
cipal  and  state  authorities  or  with  their  assistance. 

Commercial  museums  are  permanent  exhibitions  of 
samples  of  products  from  different  parts  of  the  world 
showing  what  each  nation  produces  and  thus  what  it  can 
offer  in  the  way  of  return  trade.  Samples  are  also  col- 
lected with  the  object  of  showing  the  character  of  the 
products  consumed  in  the  different  markets  of  the  world. 
By  looking  over  these  collections  the  manufacturer  and 
the  merchant  can  obtain  a more  or  less  accurate  idea  of 
the  competition  to  be  met.  Samples  are  arranged  both 
geographically — by  countries,  and  monographically — by 
products,  and  are  supplemented  by  information  as  to  origin, 
price,  industrial  value,  the  latter  obtained  by  laboratory 
tests,  etc.,  of  each  article  displayed.  Samples  are  kept 
up  to  date  by  frequent  renewal,  but  the  cost  of  collecting 
them  and  particularly  of  keeping  them  on  display  is  so 
large  that  very  few  of  the  commercial  museums  have  this 
feature  of  the  work  complete.  Commercial  museums  have 
gradually  added  a number  of  other  departments,  less  ex- 


16 


SIMON  LITMAN 


pensive  to  maintain,  but  just  as  valuable,  which  in  many 
instances  have  become  more  important  than  the  exhibits 
of  samples.  The  Bureau  of  Information  is  the  most  val- 
uable of  these  departments ; it  furnishes  the  merchant  with 
data  as  to  conditions  surrounding  the  sale  of  goods  in  for- 
eign markets;  the  information  given  bears  upon  the  cost 
of  reaching  a market,  the  customs  and  usages  of  the  place, 
the  amount  of  duties  to  be  paid,  if  any  are  levied,  the 
names  and  standing  of  business  houses,  the  best  methods 
of  packing  in  order  to  meet  local  conditions,  etc. 

One  of  the  oldest  commercial  museums  is  that  of  Brus- 
sels; it  was  organized  in  1880  and  is  placed  under  the 
direct  supervision  of  the  Ministry  of  Foreign  Affairs. 

The  Philadelphia  Commercial  Museum  in  the  United 
States  is  at  present  perhaps  the  largest  and  the  best  in- 
stitution of  its  kind;  it  was  established  in  1894  and  is  kept 
up  by  municipal  appropriations,  by  membership  fees  and 
by  gifts;  at  the  time  of  its  organization  it  received  also 
support  from  the  State  of  Pennsylvania  and  from  the  Fed- 
eral Government.  Through  its  well-planned  and  systematic 
work  the  Philadelphia  Commercial  Museum  has  been  of 
great  value  to  American  manufacturers  and  merchants 
who  wished  to  secure  foreign  markets. 

Commercial  museums  do  not  serve  as  media  for  the 
conclusion  of  business  transactions;  they  are  not  interest- 
ed in  specific  individual  enterprises,  neither  at  home,  nor 
abroad,  so  that  the  information  they  give  out  is  always 
disinterested,  unbiased  and  as  reliable  as  a careful,  pains- 
taking investigation  can  make  it. 

Export  sample  warehouses  are  a device  by  which  a 
body  of  exporters  aims  to  bring  to  the  notice  of  foreign 
buyers  goods  they  have  for  sale.  These  warehouses  are 
located  either  at  home  or  abroad  and  those  who  have 
charge  of  them  usually  act  as  intermediaries  accepting 
orders  and  delivering  goods. 


TRADE  AND  COMMERCE 


17 


Stuttgart  was  the  first  city  to  have  an  export  sample 
warehouse  and  the  first  to  establish  branches  of  it  in  va- 
rious parts  of  Germany  and  in  foreign  countries.  Similar 
institutions  have  been  organized  since  in  different  parts 
of  the  world. 

A variation  of  warehouses  are  the  so-called  floating 
exhibitions,  which  aim  to  convey  samples  of  a country’s 
commercial  products  from  one  prospective  market  to 
another. 

Export  syndicates,  an  institution  peculiar  to  Austria- 
Hungary,  Italy  and  Germany,  carry  an  import  and  ex- 
port business  for  their  members;  these  syndicates  have 
agents  in  foreign  countries  who  keep  them  informed  as 
to  the  conditions  of  the  markets,  the  financial  standing  of 
foreign  buyers,  the  opportunities  for  trade,  etc. 

However  important  the  various  private  and  semi-pub- 
lic commercial  associations  and  institutions  may  be,  their 
sphere  of  influence  is  far  more  restricted  than  that  of  the 
state,  and  it  is  towards  the  National  Government  that  the 
merchant  looks  to  a very  large  degree  for  guidance  and 
for  assistance. 

Nearly  every  department  of  the  Government  performs 
some  valuable  work  for  industry  and  commerce.  In  the 
United  States  we  find  that  the  legislative  bodies,  the  House 
of  Representatives  and  the  Senate,  have  various  stand- 
ing committees  whose  duty  it  is  to  consider  questions  af- 
fecting the  domestic  and  foreign  trade  of  the  country; 
such  are,  for  instance,  the  committees  on  interstate  and 
foreign  commerce,  on  foreign  relations,  etc.,  of  the  House, 
or  the  committees  on  commerce,  interoceanic  canals,  Cu- 
ban relations,  etc.,  of  the  Senate. 

In  the  executive  branch  of  the  Government  the  Depart- 
ment of  State  has  a Bureau  of  Trade  Relations  and  a 
Consular  Bureau.  The  department  negotiates  treaties  and 
is  the  custodian  of  those  that  are  in  force;  it  also  issues 


18 


SIMON  LITMAN 


instructions  to  consular  officers  for  reports  to  be  printed 
by  the  Department  of  Commerce  and  Labor. 

The  consular  service  can  be  considered  as  one  of  the 
most  important  single  agencies  of  the  Federal  Govern- 
ment established  in  the  interests  of  foreign  commerce. 

Consuls  are  appointed  by  the  President  with  the  con- 
sent of  the  Senate ; they  reside  abroad  in  those  of  the  com- 
mercial and  industrial  centers  where  their  presence  is  con- 
sidered necessary  for  the  benefit  of  our  traders  and  ex- 
port manufacturers.  Consuls  assist  merchants  by  safe- 
guarding and  upholding  their  lawful  interests;  they  su- 
pervise shipping  by  receiving  the  declarations  of  captains 
concerning  damages  sustained  during  voyages,  by  adjust- 
ing all  matters  of  wrecks  and  salvage,  by  examining  the 
papers  of  every  ship  which  enters  the  harbor  where  they 
are  stationed.  The  consuls  certify  the  invoices  of  goods 
shipped  to  the  United  States,  thus  insuring  a more  cor- 
rect declaration  of  values  by  exporters.  They  issue  cer- 
tificates of  births,  deaths,  marriages  and  authenticate  any 
documents  of  American  citizens  which  need  their  official 
seal  and  signature. 

The  main  activity  of  the  consuls  reaches  far  beyond 
these  functions.  Recently  they  have  emerged  from  their 
position  of  mere  supervisors  and  protectors  and  have  be- 
come gatherers  of  information,  advisors  to  importers  and 
exporters  and  to  the  home  government  in  matters  per- 
taining to  navigation,  tariff,  legislation,  commercial  con- 
ventions and  treaties,  etc.  The  consuls  are  requested  to 
report,  as  promptly  as  the  occasion  demands,  upon  the 
economic  and  industrial  conditions  and  changes  in  the  dis- 
tricts assigned  to  them.  The  reports  are  published  daily 
and  are  distributed  to  business  firms  and  to  the  press. 

The  War  Department  has  charge  of  the  river  and  har- 
bor improvements,  of  geographical  explorations  and  sur- 
veys; it  has  control  over  the  island  possessions  of  the  Unit- 
ed States,  (particularly  the  Philippines);  it  gathers  sta- 


TRADE  AND  COMMERCE 


19 


tistics  of  insular  commerce,  summaries  of  which  are  pub- 
lished and  distributed. 

The  Department  of  Agriculture  besides  benefiting  com- 
merce indirectly  by  aiding  the  agricultural  interests  of 
the  country,  aims  to  extend  agricultural  export  trade 
through  its  Division  of  Foreign  Markets. 

The  Department  of  the  Treasury  administers  the 
tariff,  regulates  the  entry  of  goods  from  foreign  lands, 
entertains  appeals  against  the  collectors’  assessment  of 
duty  upon  baggage  and  tools  of  trade,  looks  into  applica- 
tions for  the  release  of  seized  goods  and  for  the  remis- 
sion of  fines  and  penalties. 

The  Department  of  the  Interior,  through  the  upholding 
of  the  patent  laws,  encourages  inventions;  most  of  these 
have  commercial  value. 

The  Department  of  Commerce  and  Labor,  the  latest  de- 
partment organized  by  the  National  Government,  has  for 
its  specific  purpose,  as  the  law  which  created  it  declares, 
‘ 1 to  foster,  promote  and  develop  the  foreign  and  domestic 
commerce,  the  mining,  manufacturing,  shipping  and  fishery 
industries,  the  labor  interests  and  the  transportation  facili- 
ties of  the  United  States.”  Its  Bureau  of  Statistics  col- 
lects facts  pertaining  to  the  exports  and  imports  of  mer- 
chandise and  specie,  to  the  inward  and  outwrard  movement 
of  tonnage  in  our  foreign  trade,  as  well  as  the  direction 
and  the  tonnage  of  our  coastwise  and  lake  shipping. 

The  Bureau  of  Manufacturers  “ fosters,  promotes  and 
develops  the  various  industries  of  the  United  States  and 
markets  for  the  same  at  home  and  abroad,  by  gathering, 
compiling,  publishing  and  supplying  all  available  and  use- 
ful information  concerning  such  industries  and  such  mar- 
kets.” The  reports  of  the  consuls  are  sent,  through  the 
Department  of  State,  to  this  bureau. 

Other  bureaus  of  the  department  regulate  and  aid  ship- 
ping. The  Light-house  Board  maintains  light-houses,  bea- 
cons, fog  signals  and  other  safeguards  to  commerce  on  the 


20  SIMON  LITMAN 

coasts  and  inland  waterways.  The  Bureau  of  Navigation 
supervises  the  merchant  marine,  deciding  all  questions  re- 
lating to  registry,  enrollment,  licensing  of  vessels,  their 
admeasurement,  the  collection  and  refund  of  tonnage  tax- 
es. The  Steamboat  Inspection  Service  looks  after  the  con- 
dition of  our  steamers  and  thus  contributes  to  the  safety 
of  both  persons  and  capital  engaged  in  business.  The 
Coast  and  Geodetic  Survey  conducts  investigations  and 
publishes  maps  and  charts  of  the  coasts  and  harbors,  tide 
tables,  sailing  directions,  etc. 

The  Life-Saving  Service,  organized  under  the  Depart- 
ment of  the  Treasury,  patrols,  through  its  brave  and  trust- 
worthy employes,  our  coasts.  Hundreds  of  wrecks  are 
prevented,  a great  deal  of  property  and  thousands  of  lives 
saved  through  the  heroic  work  of  the  life-station  keep- 
ers and  their  able  assistants. 

Lack  of  space  prevents  a farther  consideration  of  na- 
tional means  used  for  the  purpose  of  aiding  and  promot- 
ing commerce.  It  may  be  said  that  our  great  machinery 
of  state  with  its  legislative,  judicial  and  administrative 
branches  is  engaged  mainly  in  solving  commercial  prob- 
lems, that  our  political  platforms,  the  messages  of  our 
presidents,  the  bills  introduced  into  our  Congresses  deal 
mainly  with  such  subjects  as  currency,  banking,  customs 
duties,  the  regulation  of  interstate  commerce,  the  improve- 
ment of  inland  waterways,  the  piercing  of  canals,  irriga- 
tion and  drainage  schemes  for  reclaiming  arid  or  sub- 
merged land,  the  reorganization  of  the  consular  service, 
etc.  Truly,  it  is  no  exaggeration  to  say  that  the  govern- 
ments of  civilized  countries  have  become  great  business 
undertakings  whose  time  and  energy  is  largely  devoted 
to  a study  and  direction  of  mercantile  pursuits. 


TRADE  AND  COMMERCE 


21 


III.  NATURAL  CONDITIONS  AS  THEY  AFFECT 
INDUSTRY  AND  COMMERCE. 

Both  the  domestic  and  the  foreign  trade  of  a coun- 
try depend  upon  its  industrial  development.  Agriculture, 
mining,  forestry,  fishing  and  manufacturing  are  the  basis 
of  our  mercantile  activities,  and  they  are  all  more  or  less 
influenced  by  natural  conditions,  by  physical  phenom- 
ena. 

The  farther  we  advance  in  civilization  the  more  capable 
we  become  of  being  masters  of  our  destinies;  by  artificial 
irrigation  we  make  garden  spots  of  deserts  and  we  gather 
cereals,  oranges  and  grapes  where  preceding  generations 
contended  unsuccessfully  with  shifting  sands  and  sage- 
brush; by  boring  tunnels  and  bridging  torrents  we  reach 
places  of  isolation  and  convert  them  into  regions  which 
invite  the  white  man’s  labor  and  ingenuity;  by  instilling 
the  virility,  energy  and  resourcefulness  of  the  temperate 
zone  workman  into  tropical  lands  we  break  the  enchant- 
ment of  enervating  influences,  by  which  nature  has  held 
in  somnolence  and  ignorance  the  aboriginal  inhabitants; 
by  planting  the  eucalyptus  tree  in  insanitary  localities  we 
make  them  healthful  and  habitable,  and  by  resorting  to 
dry  farming  we  open  to  cultivation  millions  of  acres  of 
arid  land. 

But  whatever  our  achievements  may  be,  we  necessarily 
move  within  certain  limits  fixed  by  nature;  these  limits 
may  be  elastic,  but  they  are  limits  nevertheless,  and  most 
of  our  successes  have  been  won  not  because  we  have  “ over- 
come” nature,  but  because  of  the  fact,  that  we  have  a 
greater  insight  into  her  mysterious  workings  and  are  now 
able  to  turn  to  our  advantage  many  of  her  treasures  here- 
tofore hidden  and  to  profitably  employ  many  of  her  forc- 
es. 

Climate  is  one  of  the  most  important  natural  factors 
which  affect  production.  By  climate  of  a country  we  un- 


22 


SIMON  LITMAN 


derstand  its  average  atmospheric  condition  with  regard 
to  temperature  and  moisture.  This  condition  manifests 
itself  in  the  successive  changes  from  season  to  season  and 
from  year  to  year. 

Temperature  is  primarily  influenced  by  latitude  or  po- 
sition with  reference  to  the  equator,  to  that  part  of  the 
earth  where  the  greatest  number  of  sun-rays  fall  upon 
a given  space  and  therefore  produce  the  greatest  amount 
of  heat.  All  other  things  being  equal,  the  nearer  a coun- 
try is  to  the  equator,  the  hotter  its  climate. 

The  world  has  been  divided  climatically  into  three  re- 
gions, lying  to  the  north  and  to  the  south  of  the  equator, 
and  known  as  tropical,  temperate  and  polar  regions.  A 
more  minute  classification  divides  the  zones  into:  equato- 
rial, tropical,  sub-tropical,  warm  temperate,  cold  temper- 
ate, sub-arctic,  arctic  and  polar. 

Although  temperature,  generally  speaking,  decreases 
as  we  proceed  from  the  equator  towards  the  poles,  this 
decrease  does  not  conform,  as  might  be  expected,  to  par- 
allels of  latitude.  Halifax,  in  Nova  Scotia,  in  the  44J° 
N.,  is  nearly  always  open  to  navigation,  while  Vladivostok, 
on  the  eastern  coast  of  Siberia,  in  the  43°  N.  is  icebound 
for  more  than  four  months  in  the  year.  New  York,  sit- 
uated in  the  same  latitude  as  Naples  has  colder  winters 
than  Berlin,  which  is  located  more  than  ten  degrees  near- 
er to  the  pole.  The  semi-tropical  orange  may  be  grown 
in  the  northwest  of  Italy  to  the  44°,  while  in  the  east  of 
the  United  States,  it  can  not  be  cultivated  higher  than 
the  31°  N. 

In  order  to  judge  of  the  climatic  possibilities  of  a local- 
ity for  the  raising  of  crops,  a knowledge  of  the  mean 
yearly  temperature  is  not  sufficient.  Torrid  scorching 
summers  alternating  with  rigorous  winters  may  make  the 
yearly  average  in  one  place  equal  to  that  in  another  pos- 
sessing a mild  equable  climate  all  the  year  round;  but 
what  a difference  from  the  point  of  view  of  industry  and 


TRADE  AND  COMMERCE 


23 


commerce  between  the  two  localities!  There  are  greater 
contrasts  between  summer  and  winter  in  eastern  Asia  than 
in  the  east  of  America,  while  western  Europe  is  character- 
ized by  a more  even  and  a somewhat  warmer  climate  than 
the  western  parts  of  the  American  continents.  These  dif- 
ferences have  a marked  effect  upon  agricultural  and  other 
industrial  pursuits  in  the  above-named  territories. 

Climatic  Belts. 

Tropical  regions,  because  of  the  excessive  amount  of 
heat  and  moisture  which  characterizes  the  greater  part 
of  them,  are  regions  of  luxuriant  vegetation,  of  jungles 
and  forests  with  trees  of  enormous  size  and  thickets  of 
twining  and  climbing  plants  so  dense  that  they  are  al- 
most impenetrable  to  man.  A tremendous  expenditure 
of  energy  and  labor  is  required  to  keep  the  ground  clear 
and  fit  for  cultivation.  If  neglected  for  a short  time  the 
soil  becomes  covered  with  new  growths  just  as  thick,  vig- 
orous and  exuberant  as  those  removed.  Where  this  ob- 
stacle to  industry  and  commerce  does  not  exist,  there  is 
another,  more  formidable  one,  the  desert.  The  largest 
deserts  of  the  world,  where  only  an  occasional  oasis  relieves 
the  monotony  of  sterility,  are  in  the  tropics. 

The  soil’s  fertility  is  in  the  main  dependent  upon  rain- 
fall. The  ocean  is  our  source  of  moisture,  and  while  it  is 
true  that  the  greatest  amount  of  humidity  is  sucked  up 
by  the  hot  air  of  the  tropics  from  the  tropical  sea,  and  dis- 
tributed as  rain,  it  is  also  true  that  where  mountains  occur 
to  cut  off  the  ocean  moisture  from  the  interior,  as  is  the 
case  in  many  parts  of  Australia,  Africa  and  Asia,  or  where 
the  prevailing  wind  drives  the  vapors  away  from  land,  as 
in  some  coastal  regions  of  America  and  Africa,  a perma- 
nent drought  and  a desert  is  the  result. 

However,  the  larger  part  of  the  tropics,  because  of 
the  high  and  more  or  less  uniform  temperature  through- 
out the  year  and  because  of  a generally  large  amount  of 


24 


SIMON  LITMAN 


moisture,  yield  various  products  which  it  is  either  difficult 
or  impossible  to  raise  outside  of  them,  and  they  yield  these 
products  with  a fabulous  abundance;  trees  bear  fruit  all 
the  year  round,  and  one  crop  of  vegetation  succeeds  an- 
other almost  as  fast  as  it  can  be  gathered. 

The  complex  life  of  the  civilized  man  is  to  a very  large 
extent  dependent  upon  tropical  and  sub-tropical  products. 
It  is  only  necessary  to  look  over  the  import  list  of  the 
United  States,  England,  or  Germany,  in  order  to  realize 
the  significance  of  that  vast  territory  which  stretches 
north  and  south  of  the  equator  and,  passing  the  tropics  of 
Cancer  and  of  Capricorn,  gradually  merges  into  the  so- 
called  temperate  zone. 

The  United  States  imports  tropical  and  sub-tropical 
goods  to  the  value  of  over  $500,000,000  a year;  these  goods 
include  bark  for  quinine,  as  well  as  other  drugs,  cabinet 
woods,  cocoa,  coffee,  cork,  dyewoods  and  extracts,  fibers, 
fruits  and  nuts,  gums,  indigo,  ivory,  rice,  rubber,  sago, 
tapioca,  spices,  sugar,  tea,  vanilla  beans,  vegetable  oils,  etc. 

The  need  for  tropical  wares,  while  not  as  intense  in 
the  past,  as  it  is  now,  has  always  been  felt.  European 
nations,  since  the  inception  of  their  commerce,  sought  the 
trade  of  the  tropical  Orient.  They  established  the  Mediter- 
ranean route  to  the  coasts  of  Syria  and  Egypt,  and  thence 
to  the  Euphrates  and  the  Persian  Gulf;  they  crossed  the 
highlands  of  the  Caucasus  and  Central  Asia,  and  sent  their 
ships  through  the  .Bosphorus  to  Trebizond  and  Batoum  on 
the  Black  Sea.  When  all  these  routes  were  cut  off  by  the 
victorious  Turks  and  the  Atlantic  became  the  only  way 
they  embarked  in  their  frail  vessels  upon  a series  of  per- 
ilous journeys  in  order  to  find  an  ocean  route  to  the  land 
of  the  equatorial  sun;  and  when  the  ocean  route  was  dis- 
covered, we  may  realize  how  important  it  was  considered 
from  the  many  wars  which  were  fought  for  its  control. 

At  present  the  routes  are  open  to  all,  but  the  tropics 
themselves  have  become  to  a very  large  extent  posses- 


TRADE  AND  COMMERCE 


25 


sions  of  the  various  commercial  nations  of  the  world. 
Knowing  the  great  wealth  which  these  regions  are  capable 
of  yielding,  England,  France,  Germany  and  other  coun- 
tries have  taken  possession  of  tropical  territory,  wherever 
they  have  been  able  to  do  so,  and  today  the  white  races  are 
expending  in  the  tropics  much  money,  energy  and  skill. 

A serious  obstacle  to  the  development  of  such  regions 
is  the  indolence  of  the  natives.  The  magnitude  of  this 
hindrance  may  be  imagined,  when  one  reflects  that  about 
one-third  of  the  world’s  population  live  in  tropical  colonies. 
The  wants  of  the  natives  are  few,  and  these  are  easily  sat- 
isfied; there  is  little  incentive  for  exertion;  banana  and 
cocoanut  grow  wild;  other  staple  foods  yield  quickly  and 
with  little  effort.  On  the  other  hand,  the  moist  heat  is  so 
enervating  that  continuous  labor  is  very  irksome. 

Many  devices  have  been  used  in  order  to  inculcate 
habits  of  energy  and  thrift  into  the  aboriginal  inhabitants 
of  the  torrid  zone.  These  began  with  the  whip  of  the 
slave  driver  and  assumed  various  forms  (culture,  system, 
etc.)  until  the  white  man  learned  that  his  object  could  be 
better  attained  without  cruelty,  and  therefore  more  human 
methods  are  now  used.  We  try  to  benefit  the  native  physi- 
cally, mentally  and  morally,  we  raise  his  standard  of  liv- 
ing and  educate  him,  we  cause  him  to  have  new  needs  and 
wants,  and  we  teach  him  how  he  can  satisfy  these  by  means 
of  application  and  persistent  labor. 

W e surround  the  native  with  the  railway,  the  telegraph 
and  the  telephone,  with  dams  and  ditches,  we  place  steam- 
ers on  his  rivers,  build  piers  and  warehouses  on  his  harbor 
sites,  we  open  banks,  offices  and  stores  in  his  settlements, 
and  by  means  of  this  peaceful  penetration  into  his  terri- 
tory, we  gradually  enter  into  his  mind  and  his  heart.  This 
work  is  not  easy,  but  when  once  accomplished  it  is  much 
more  effective  and  certainly  much  more  in  keeping  with 
our  modern  ideas  of  mercy  and  justice  than  the  atrocious 


26 


SIMON  LITMAN 


methods  which  have  been  used  heretofore  and  which  un- 
fortunately are  yet  used  in  some  localities. 

The  polar  regions  are  the  least  important  from  a com- 
mercial point  of  view.  Their  frigid  portions  are  buried 
under  snow  and  ice  for  the  greater  part  of  the  year;  dur- 
ing the  sho^t  summer  months  when  the  soil  thaws  from 
ten  to  fifteen  inches,  mosses,  lichens  and  a few  flowers  of 
brilliant  hues  but  of  no  economic  value  make  their  appear- 
ance. 

The  fish  in  the  lakes  and  rivers  and  the  fur-covered 
animals  on  land  sustain  the  life  of  the  natives,  but  it  re- 
quires the  severest  exertion  to  procure  the  most  necessary 
food,  clothing  and  shelter.  The  struggle  for  this  bare  ex- 
istence consumes  the  strength  and  energy  of  the  aborigines 
so  that  they  are  not  able  to  lift  themselves  above  the  level 
of  sturdy  hunters  and  fishermen  wandering  from  place  to 
place  in  search  of  food  and  erecting  primitive  huts  out  of 
ice,  snow  or  skins. 

It  was  the  search  for  furs  which  first  attracted  the 
temperate  region  trader  into  the  bleak  valleys  and  plains 
inhabited  by  the  Esquimaux  and  the  Indian.  The  Hudson 
Bay  Company,  one  of  the  most  important  mercantile  un- 
dertakings of  the  seventeenth  and  eighteenth  centuries, 
derived  its  enormous  profits  from  the  sale  of  the  skins  of 
the  polar  bear,  the  fox  and  other  arctic  animals. 

Recently  rich  mineral  deposits  have  been  discovered  in 
many  parts  of  the  polar  zone,  notably  in  Alaska;  these 
discoveries  attract  people  who  under  ordinary  circum- 
stances would  not  venture  to  go  where  life  is  so  full  of  de- 
nials and  hardships. 

The  temperate  zone  lies  between  the  two  climatic  ex- 
tremes just  described  and  it  offers  the  best  opportunities 
for  the  modern  man  to  live  comfortably  and  to  pursue  his 
career  successfully.  The  succession  of  seasons,  with  snow 
and  frost  in  winter  when  the  vegetation  is  dormant  and 
with  warmth  in  spring  and  summer  when  the  growing,  ma- 


TRADE  AND  COMMERCE 


27 


turing  grains  and  plants  cover  the  ground,  have  taught 
men  the  value  of  foresight  and  saving;  it  taught  them  the 
necessity  for  sowing  in  spring,  so  as  to  be  able  to  reap  in 
autumn  and  thus  provide  for  the  long  winter  months. 

The  refusal  of  the  soil  to  yield  abundantly  unless  culti- 
vated, and  the  readiness  with  which  it  responds  to  culti- 
vation gives  impetus  to  activity,  while  the  climatic  condi- 
tions are  such  as  to  make  work  more  agreeable  than  in 
either  the  tropics  or  in  the  polar  regions.  In  fact,  the 
temperate  zone  climates,  barring  some  localities  and  cer- 
tain periods  of  the  year,  are  such  as  to  stimulate  man  to 
exertion. 

In  the  temperate  regions  we  find  highly  developed  man- 
ufacturing industries,  concentrated  in  mammoth  establish- 
ments where  steam  and  electricity  applied  to  modern  ma- 
chinery has  increased  a thousand  fold  the  productive  effi- 
ciency of  man;  we  find  agriculture  based  upon  the  knowl- 
edge of  the  properties  of  soil  and  the  methods  of  improving 
its  fertility;  we  find  the  most  diversified  industrial  pur- 
suits, all  interdependent  and  all  tending  towards  the  pro- 
duction of  material  prosperity,  a necessary  basis  for  the 
thriving  of  science  and  arts;  we  find  gigantic,  far-reaching 
business  combinations;  we  find  commerce  giving  its  broad- 
ening cosmopolitan  cachet  to  every  activity,  lifting  the 
nations  of  the  world  to  a better,  more  enlightened  attitude 
towards  each  other,  uniting  the  North  and  the  South,  the 
East  and  the  West  and  showing  that  we  are  all  “of  the 
same  blood.” 

The  climate  of  the  belts  is  by  no  means  uniform  through- 
out their  territory,  and  in  each  region  there  are  many  ex- 
ceptions to  the  usual  conditions  of  the  zone. 

The  following  are  the  chief  causes  which  act  as  modi- 
fiers of  climate: 

Altitude. — Climate  becomes  cooler  with  increased 
height  above  sea  level,  temperature  decreasing  about 
1°  Fahr.,  for  every  one  hundred  feet  of  elevation. 


2 8 


SIMON  LITMAN 


On  the  high  plateaus  and  mountain  slopes  of  equatorial 
Africa  and  South  America  we  may  find  the  atmospheric 
conditions  of  our  temperate  belt,  while  the  summits  of  their 
mountains  rising  above  15,000  feet  are  covered  with  per- 
petual ice  and  snow. 

It  was  the  existence  of  a high  and  comparatively  cool 
plateau  which  permitted  the  Dutch  Boers  to  penetrate  into 
South  Central  Africa.  They,  and  then  the  English,  trav- 
ersed about  a thousand  miles  by  land  and  seized  and  col- 
onized a tropical  country  that  lies  within  but  70  or  80  miles 
of  the  ocean  behind  the  Portuguese  settlements  in  the  east. 
The  Portuguese,  although  so  near,  were  not  able  to  pene- 
trate inland,  because  they  were  surrounded  by  tropical 
swamps  and  could  do  no  more  than  keep  within  the  reach 
of  the  ocean. 

Relation  of  Land  and  Sea  Masses. — Proximity  to  the 
sea  has  an  equalizing  effect  upon  temperature.  Water 
heats  and  cools  more  slowly  than  land,  and  therefore  terri- 
tories near  the  seacoast  are  subject  to  fewer  and  less  sud- 
den changes,  both  between  day  and  night  and  between  sum- 
mer and  winter,  than  more  continental  land  masses.  The 
central  parts  of  the  eastern  hemisphere  are  colder  and 
present  greater  extremes  of  heat  and  cold  than  the  central 
parts  of  the  western,  the  eastern  hemisphere  being  a broad- 
er and  a greater  land  mass  than  the  western  and  thus  hav- 
ing its  center  farther  removed  from  the  sea. 

The  surface  waters  of  the  ocean  circulate,  the  heated 
water  of  the  equatorial  zone  flowing  toward  the  polar 
regions  and  the  cold  water  of  the  polar  oceans  moving 
toward  the  equator.  In  some  parts  of  the  ocean  these 
movements  are  sufficiently  continuous  to  constitute  the  so- 
called  currents;  these  currents  as  they  pass  near  the  coasts 
influence  the  temperature  of  the  land.  The  climate  of  the 
United  Kingdom  is  much  warmer  than  that  of  the  Atlantic 
Coast  territory  in  Canada,  because  the  British  Isles  lie  on 


TRADE  AND  COMMERCE 


29 


the  way  of  the  warm  Gulf  stream  while  the  shores  of  Can- 
ada are  passed  by  the  Labrador  Ice  Current. 

Direction  of  the  Winds  and  Position  of  the  Mountain 
Ranges. — Winds  exercise  a paramount  climatic  influence 
as  carriers  of  heat  and  moisture.  They  bring  the  warm 
air  of  low  latitudes  to  the  colder  regions  of  higher  and 
vice  versa,  their  main  and  most  regular  course  arising 
from  the  difference  of  temperature  at  the  poles  and  the 
equator. 

The  air  above  large  bodies  of  water  is  saturated  with 
moisture;  this  is  particularly  true  of  the  air  in  tropical 
regions,  as  the  warmer  the  air  the  more  moisture  it  can 
absorb  and  hold.  The  winds  which  blow  from  the  equator 
are  therefore  not  only  warm  but  also  moisture  laden.  On 
their  way  northward  and  southward  (because  of  the  rota- 
tion of  the  earth  the  direction  is  not  exactly  north  and 
south),  they  gradually  cool  off;  in  this  cooling  process  the 
vapor  condenses  into  water  and  yields  rain  or  snow. 

When  an  air  current  meets  a mountain  range  it  is  de- 
flected upwards  and  thus  strikes  a cooler  atmosphere;  the 
condensing  process  takes  place  immediately  and  a heavy 
rainfall  on  the  windward  side  of  the  mountains  is  the  re- 
sult. The  wind  which  blows  over  the  summits  is  dr}^?  and 
the  regions  which  lie  on  the  other  side  of  the  mountain 
chains  are  therefore  subject  to  droughts. 

One  of  the  advantages  which  the  new  world  possesses 
over  the  old  is  in  the  direction  of  its  mountain  ranges. 
They  extend  north  and  south,  most  of  them  being  on  the 
western  borders  of  the  North  and  South  American  conti- 
nents, thus  presenting  no  barrier  to  the  free  passage  of  the 
moist  winds  from  the  equator.  In  Asia,  Africa  and  Aus- 
tralia most  of  the  mountains  extend  east  and  west;  be- 
cause of  this,  these  continents  have  many  large  regions 
which  are  either  entirely  sterile  or  lack  a sufficient  amount 
of  rainfall  needed  for  agricultural  pursuits. 


30 


SIMON  LITMAN 


Forests. — The  effects  of  forests  on  physical  conditions 
of  a country  are  very  great,  although  it  is  well  to  guard 
against  unsubstantiated  assertions  and  indiscriminate  argu- 
ments relative  to  their  far-reaching  influence  upon  climate. 
Some  go  so  far  as  to  confuse  cause  and  effect,  they  attribute 
the  great  amount  of  rainfall  over  the  forest  regions  to  the 
presence  of  trees,  and  not  the  existence  of  trees  to  the 
amount  of  rainfall  and  they  ascribe  every  drought  that 
sweeps  over  a country  not  to  the  great  cosmic  influences, 
but  to  forest  destruction,, 

The  most  immediately  recognizable  action  of  forests  is 
that  upon  the  amount  of  moisture  in  their  immediate  vicin- 
ity; this  is  not  because  forests  produce  rain,  but  because 
they  regulate  the  movement  of  rain  water.  Leaves, 
branches  and  trunks  retain  some  of  this  water  and  evap- 
orate it,  and  the  rain  which  passes  through  the  growing 
vegetation  and  falls  on  the  ground  meets  a thick  mass  of 
decayed  leaves,  twigs  and  trunks.  As  it  gradually  pene- 
trates into  the  soil  and  the  subsoil,  the  roots  of  trees  draw 
some  of  it  back  upward;  they  then  pass  it  through  their 
trunks  and  branches  to  the  leaves,  returning  it  into  the  air 
in  the  form  of  vapor.  Thus  the  forest  checks  a too  rapid 
evaporation  of  water  and  preserves — even  in  dry  weather 
- — humid  air  and  cool  atmosphere. 

The  more  uniform  climatic  conditions  of  the  forest  pre- 
vail in  its  neighborhood,  but  the  extent  of  this  equalizing 
influence  depends  upon  the  species  of  trees  the  forest  is 
composed  of;  narrow-leaved  pines  and  firs  have  the  least 
effect,  broad-leaved  trees  with  dense  foliage,  like  beeches, 
the  greatest;  the  location  of  the  forest  with  reference  to 
winds  is  also  of  prime  importance  in  this  connection. 

The  effect  of  the  forest  on  soil  is  a well-established 
fact;  the  forest  cover  protects  the  soil  from  the  disinte- 
grating action  of  the  atmosphere;  the  forest  maintains 
stable  conditions  on  mountain  slopes  by  preventing  ero- 


TRADE  AND  COMMERCE 


31 


sions  and  wash-outs  and  the  blowing  of  shifting  sands 
down  into  the  valleys. 

More  important  from  a national  point  of  view  than  the 
above-mentioned  influences  of  the  forest  is  its  effect  upon 
the  flow  of  streams  and  rivers.  It  has  been  computed  that 
the  direct  yearly  damage  by  floods  in  the  United  States 
has  increased  steadily  since  1900  from  $45,000,000  to  $238,- 
000,000,  and  the  indirect  loss  is  much  greater  than  these 
figures  indicate.  It  is  more  than  a significant  coincidence 
that  the  number  and  the  violence  of  our  floods  grow  with 
the  increased  activity  of  the  sawman  and  the  axman  in 
the  woods  surrounding  the  head  waters  of  our  streams. 

Not  every  deforestation  brings  flood,  and  not  every 
flood  can  be  prevented  by  a forest,  however  great  and  noble 
this  forest  may  be;  but  it  cannot  be  denied  that  many  of 
our  woods  which  have  been  so  ruthlessly  destroyed,  acted 
as  flood  checks  by  distributing  more  evenly  and  over  a 
larger  period  of  time  the  run-off  of  rain  and  snow  water 
which  supplied  our  springs  and  brooks;  this  gave  the  rivers 
a more  steadfast  flow;  the  incalculable  value  of  the  latter 
cannot  be  overestimated.  The  speeding  freshet,  the  river 
risen  above  its  banks,  in  addition  to  producing  the  horrors 
and  losses  of  destructive  inundation  tear  away  and  carry 
down  to  the  sea  soil  matter,  upon  which  depends  the  well 
being  and  the  prosperity  of  our  farming  population.  It 
has  been  estimated  that  the  loss  to  upland  farms  through 
soil  erosion  produced  by  freshets  equals  500,000,000  a year. 
The  soil  matter,  stones  and  other  debris  accumulate  at  the 
mouths,  in  the  lower  courses  of  rivers  and  in  harbors;  this 
necessitates  heavy  expenditures  for  dredging,  channel  cut- 
ting, bar-building.  When  the  dry  summer  sets  in,  the  tor- 
rents subside,  the  springs  and  brooks  dry  out  and  the  river 
with  its  supply  of  water  cut  off,  rapidly  falls  into  its  deeper 
channels  and  becomes  unnavigable. 

Soil. — Plants  can  not  thrive  unless  the  nature  of  the 
soil  is  favorable  to  their  growth.  Large  crops  can  be  pro- 


32 


SIMON  LITMAN 


duced  only  on  rich  soils,  soils  containing  a large  store  of 
plant  food,  of  nitrogen,  phosphorus,  etc. 

Soils  differ  from  one  another  physically  and  chemically. 

The  physical  dissimilarity  depends  upon  the  condition 
of  the  particles.  They  may  be  coarse  or  fine,  porous  or 
compact  and  tenacious.  Other  things  being  equal,  fine 
soils  are  more  fertile,  that  is,  they  supply  food  more  plenti- 
fully to  the  vegetation  living  upon  them  than  coarse  soils. 
Porous  soils  are  light  and  easily  worked  by  the  plow  or 
the  spade;  they  permit  the  sinking  of  rain  deep  into  them 
and  the  rise  of  moisture  from  below  to  the  surface  (by 
capillarity);  these  qualities  make  porous  soils  advanta- 
geous to  some  plants,  coffee  in  Brazil,  and  disadvantageous 
to  others,  particularly  those  which  require  the  retention 
of  a great  deal  of  moisture  around  their  roots.  Porous 
soils  are  usually  dry  and  warm,  while  compact  soils  (clays) 
are  wet  and  cold. 

Soils  differ  in  their  chemical  composition  with  regard 
to  those  substances  which  are  made  use  of  by  plants  as 
food.  These  substances,  besides  nitrogen  and  phosphorus, 
are  potassium,  magnesium,  sulphur,  iron  and  calcium. 
Water  dissolves  them,  and  when  they  are  dissolved  they 
are  absorbed  by  the  roots  of  the  plants.  This  absorption 
leads  to  soil  exhaustion,  unless  something  is  done  to  re- 
store the  mineral  matter. 

The  conservation  of  soil  fertility  is  one  of  the  greatest 
problems  confronting  all  nations.  Most  important  meth- 
ods used  for  the  purpose  of  solving  it  are:  (1)  the  rota- 
tion of  crops  and  (2)  the  use  of  fertilizers,  either  natural — 
farm  manure,  or  artificial — phosphate  rocks,  bone  ash,  cot- 
ton seed  refuse,  seaweed,  guano,  etc. 

TV.  LOCALIZATION  OF  INDUSTRIES. 

Industries  are  established  in  places  where  they  can  be 
profitably  carried  on.  The  most  important  economic  ad- 
vantages leading  to  localization  are:  favorable  climate, 


TRADE  AND  COMMERCE 


33 


presence  and  accessibility  of  natural  supplies,  nearness  to 
the  sources  of  raw  materials,  nearness  to  fuel,  proximity 
to  water,  accessibility  to  markets,  supply  of  labor,  supply 
of  capital,  characteristics  of  people,  the  early  inception  of 
an  industry. 

Favorable  Climate. 

The  most  evident  influence  of  the  climate  is  that 
which  it  exercises  upon  commodities  derived  from  the 
vegetable  kingdom.  The  successful  growth  of  these  com- 
modities is  dependent  upon  certain  climatic  conditions, 
upon  a certain  degree  of  temperature  and  a certain 
amount  of  rainfall  at  different  seasons  of  the  year. 
Most  animals  obtain  their  sustenance  from  vegetation;  in 
addition  to  this  they  are  very  sensitive  to  heat  and  cold; 
climate  therefore  affects  both  directly  and  indirectly  ani- 
mal life.  Now,  since  most  of  the  industries  which  supply 
us  with  food,  clothing  and  shelter  derive  their  raw  mater- 
ials from  either  the  vegetable  or  animal  kingdoms,  we  can 
readily  understand  the  effect  which  climate  has  upon  the 
localization  of  some  of  the  most  valuable  industrial  activi- 
ties. 

Climate  affects,  not  only  the  location  of  agriculture  in 
its  various  forms  (raising  of  grains,  horticulture,  viticul- 
ture, stock  raising,  dairying,  etc.),  but,  also,  the  location  of 
a number  of  manufacturing  industries. 

The  spinning  of  the  finest  cotton  yarns  has  been  made 
possible  in  Lancashire,  England,  because  of  the  extremely 
moist  atmosphere  there.  Germany  and  other  countries 
have  made  many  attempts  to  compete  with  the  superior 
cotton  fabrics  of  Lancashire,  but  these  attempts  thus  far 
have  been  failures  because  of  the  lack  of  suitable  climatic 
conditions  in  the  localities  where  the  competing  mills  and 
factories  were  established. 

The  commercial  result  of  this  superiority  of  Lancashire 
has  been  the  movement  of  raw  cotton  from  cotton-produc- 

B — IV  -—3 


34 


SIMON  LITMAN 


ing  regions  in  the  United  States,  in  India,  and  in  Egypt 
to  Great  Britain  and  the  shipment  by  England  of  finished 
cotton  goods  to  various  parts  of  the  world,  where  the  well- 
to-do  demand  a fine  grade  of  goods.  The  tobacco  industry 
is  another  illustration  of  the  effects  of  climate  upon  local- 
ization of  production  and  of  manufactures.  The  making 
of  good  cigars  and  of  high-grade  cigarettes  requires  a dry 
climate;  on  the  other  hand,  the  tobacco  leaf  needs  for  its 
successful  growth  a great  deal  of  humidity;  therefore  to- 
bacco leaves  are  sometimes  moved  long  distances  from  the 
places  where  they  are  grown  to  the  manufacturing  estab- 
lishments. 

There  is  another  very  important  climatic  effect  which 
must  not  be  overlooked,  the  effect  upon  the  workman. 
Where  climatic  conditions  are  favorable,  where  the  winters 
are  not  too  cold,  or  the  summers  too  hot,  the  laborer  is 
capable  of  working  more  efficiently,  and  of  thus  producing 
better  results. 

Extractive  industries,  like  mining,  quarrying,  or  indus- 
tries which  obtain  supplies  from  nature,  like  fishing,  lum- 
bering, fur  and  sponge  collecting,  are  necessarily  limited 
in  their  localization  by  the  presence  and  accessibility  of 
natural  supplies.  It  is  true  that  men  stock  rivers  with 
fish,  and  plant  trees,  but  their  efforts  are  insignificant 
when  compared  with  the  work  of  nature,  and  all  our  in- 
genuity and  resourcefulness  have  not  as  yet  enabled  us  to 
create  a coal  mine  or  a marble  quarry. 

Nearness  to  the  sources  of  raw  materials  determines 
the  location  of  a number  of  manufacturing  industries. 
Flour  mills  generally  center  in  wheat  districts,  distilleries 
in  corn-producing  regions;  the  making  of  wine  is  carried 
on  near  vineyards  and  the  canning  of  fruits  and  vegetables 
near  orchards  and  vegetable  gardens.  The  wood-pulp 
paper  industry  is  established  near  spruce  and  poplar  for- 
ests; the  pottery  industry  near  clay  beds;  slaughtering  and 
meat  packing  in  stock-raising  localities. 


TRADE  AND  COMMERCE 


35 


The  reasons  for  the  establishment  of  manufactures 
close  to  the  raw  materials  are,  first,  the  saving  on  freight 
charges  which  bear  more  heavily  upon  bulky  raw  products 
than  upon  finished  commodities;  second,  perishability  of 
certain  classes  of  goods:  fruits,  vegetables,  milk,  fish,  etc. 
Refrigerator  cars  overcome  to  a certain  extent  this  latter 
difficulty,  but  refrigerator  transportation  is  expensive. 

Nearness  to  fuel  is  another  important  consideration. 
Glass  manufacturing  is  established  near  the  sources  of 
natural  gas  (in  Indiana,  Ohio),  because  it  requires  large 
quantities  of  pure  fuel.  Pennsylvania  leads  in  iron  and 
steel  production  because  of  the  beds  of  coal  existing  there. 

Proximity  to  Water  Power. 

Many  manufacturing  plants  are  influenced  in  choice  of 
locality  by  proximity  to  water;  such  industries  as  make  use 
of  heavy  machinery  (flour  milling,  log  sawing  and  planing), 
utilize  running  streams  for  power.  The  most  modern  use 
of  water  as  a motive  power  is  for  the  generation  of  elec- 
tricity. 

Accessibility  to  Markets. 

Service  and  repair  works  must  be  situated  in  im- 
mediate neighborhood  of  their  customers.  The  lock- 
smith and  the  plumber,  the  physician  and  the  lawyer 
are  of  comparatively  little  value  unless  they  are  on 
the  spot.  But  service  and  repair  industries  are  not 
the  only  ones  that  follow  the  consumers.  Nearly  48  per 
cent  of  the  manufacturing  of  the  United  States  is  centered 
in  six  states:  Massachusetts,  Connecticut,  Rhode  Island, 
New  York,  New  Jersey  and  Pennsylvania.  This  concen- 
tration was  caused  mainly  by  the  fact  that  when  the  manu- 
facturing development  of  the  country  began,  the  bulk  of 
our  population  lived  in  these  states  and  thus  offered  the 
largest  market  for  the  sale  of  finished  products.  The  in- 
fluence of  the  market  may  be  seen  in  the  steady  westward 


36 


SIMON  LITMAN 


movement  of  our  center  of  manufactures;  in  a general  way 
manufactures  follow  the  movement  of  the  consuming  popu- 
lation. However,  the  westward  movement  of  manufactures 
in  the  United  States  may  be  explained  by  other  facts  than 
the  movement  of  the  markets.  It  is  self-evident  that  the 
American  people  do  not  go  westward  in  the  capacity  of 
consumers  alone;  they  move  as  producers,  and  productive 
industries  necessarily  follow  them. 

Nearness  to  raw  materials  and  proximity  to  markets 
must  not  be  taken  too  literally.  Good  means  of  communi- 
cation and  transportation  shorten  distances  and  thus  they 
play  an  important  role  in  localizing  industries  in  response 
to  other  factors  besides  geographic  proximity,  such  as  pres- 
ence of  skilled  labor,  accumulated  capital,  etc. 

The  supply  of  labor  is  a very  important  factor.  Labor 
cannot  be  moved  from  place  to  place  as  easily  as  a bale 
of  cotton  or  a barrel  of  sugar,  and  industries  are  not  estab- 
lished with  the  expectation  that  labor  will  come  when  it 
is  needed. 

The  matter  of  labor  supply  must  be  studied  very  care- 
fully before  enterprises  are  launched.  Improved  transpor- 
tation facilities  tend  to  make  labor  more  mobile  than  it 
was  in  former  times. 

Capital,  which  is  needed  for  most  of  our  enterprises, 
is  available  wherever  there  are  chances  of  secure  and  prof- 
itable investment.  However,  a study  of  actual  conditions 
shows  that  capital  is  not  as  movable  as  many  of  the  theo- 
retical economists  consider  it.  1 ‘ It  is  almost  as  important,” 
says  Mr.  Hall  in  the  XII  Census,  “to  have  a supply  of  local 
capital  as  it  is  to  have  a supply  of  local  labor.  Although 
most  large  enterprises  are  now  financed  from  the  great 
financial  centers,  the  plants  are  located  usually  in  places 
which  have  already  become  industrial  centers  through  the 
efforts  of  the  people  there  and  by  means  of  their  money.” 

Localities  which  have  proved  their  worth  by  the  accumu- 
lation and  the  manipulation  of  local  capital  attract  out- 


TRADE  AND  COMMERCE 


37 


side  investments  more  readily  than  untried  places.  The 
Report  of  the  Industrial  Commission  cites  as  one  of  the 
causes  for  the  establishment  of  cotton  manufactures  in 
New  Bedford,  a successful  fishing  port,  the  supply  of  local 
capital  set  free  by  the  decline  in  the  whaling  industry. 
The  necessary  local  supply  of  labor  came  from  the  surplus 
population  on  the  New  England  farms. 

Characteristics  of  People. 

The  pre-eminent  position  held  by  France  in  the  produc- 
tion of  articles  of  taste  and  of  beauty  can  be  explained  by 
the  presence  of  artistic  ability  in  the  French  nation  de- 
veloped through  centuries  of  effort  and  of  achievement 
in  this  direction.  The  painstaking,  conscientiously  atten- 
tive to  details,  Germans  lead  in  the  production  of  such 
things  as  require  careful  attention  to  details  (chemicals, 
dyes,  etc.). 

The  early  inception  of  an  industry  gives  an  unquestion- 
able advantage  to  the  locality  where  the  particular  industry 
has  been  established.  The  continued  pursuance  of  any 
kind  of  work  develops  in  the  people  technical  knowledge 
and  skill,  which  helps  materially  in  competition  with 
other  localities. 

Irregular  and  heavy  taxation  acts  as  a disturbing  ele- 
ment, in  many  instances  as  an  effective  hindrance,  or  a 
barrier  to  industrial  development. 

Legislative  enactments,  i.  e.,  protective  tariffs,  bounties, 
etc.,  are  often  used  for  the  purpose  of  creating  and  encour- 
aging certain  branches  of  industry.  Govermental  aid  has 
been  invoked  and  successfully  applied,  especially  in  the 
case  of  manufactures  whose  rise  in  a country  may  have 
been  prevented  by  artificial  (historic)  causes.  A country 
may  be  possessed  of  undeveloped  resources,  its  people  may 
have  latent  qualities  of  character  and  temperament  mak- 
ing them  fit  for  the  greatest  achievements  in  certain  lines 
of  industrial  endeavor,  yet  neither  the  one,  nor  the  other 


38 


SIMON  LITMAN 


may  have  had  opportunities  for  development.  Political  or 
religious  dissensions,  as  was  the  case  in  Germany  and  is 
yet  the  case  in  Austria-Hungary,  subjugation  to  a foreign 
power — Russia  under  the  Tartar  rule — may  have  acted  as 
checks  upon  industrial  progress.  When  these  conditions 
are  removed,  a country  may  find  itself  confronted  by  for- 
midable, fully  developed  economic  rivals.  For  the  purpose 
of  protecting  its  newly  created  industries  against  power- 
ful foreign  competition  the  Government  imposes  customs 
duties  or  grants  subsidies  and  bounties.  Thus  aided  and 
protected  the  industries  may  grow,  and  if  there  are  no 
natural  and  permanent  causes  preventing  their  successful 
pursuit,  they  may  soon  become  capable  of  holding  their 
own  at  home  and  of  competing  abroad. 

Y.  COMMERCIAL  ROUTES. 

The  influence  of  commercial  routes  uniting  the  nations 
of  the  world  and  bringing  the  products  of  one  within  easy 
reach  of  another  may  be  seen  at  each  stage  of  our  daily 
existence,  in  the  food  we  eat,  in  the  material  and  cut  of 
our  clothing,  in  the  furnishings  of  our  homes  and  our  pub- 
lic buildings,  in  our  thoughts  and  actions  when  we  are 
at  work,  and  in  our  recreations  when  we  are  at  play. 

Great  changes  have  taken  place  within  the  last  few 
decades  in  the  social  and  economic  life  of  the  world.  It 
has  been  customary  to  explain  these  changes  by  referring 
to  the  application  of  physical,  mechanical  and  chemical  dis- 
coveries upon  industrial  arts.  However,  this  explanation 
is  hardly  sufficient  as  it  begets  a perplexing  question:  why 
have  industrial  laborers  who  for  centuries  fought  innova- 
tions, who  attacked  and  stoned  the  inventors  and  destroyed 
their  creations,  why  have  they  changed  their  attitude 
towards  research  laboratories  and  mechanical  shops,  why 
have  they  adopted  steam  and  electrically  driven  motors 
and  all  labor-saving  machinery  and  devices. 


TRADE  AND  COMMERCE 


39 


If  we  attempt  to  answer  this  question,  we  must  come 
to  the  conclusion  that  the  modem  technique  of  production 
has  been  brought  about  by  some  extraneous  revolutioniz- 
ing influence.  It  was  the  application  of  modern  scientific 
inventions  upon  means  of  locomotion  which  made  impos- 
sible the  retention  of  old  methods  of  production;  it  was 
the  commercial  route  traversed  by  the  locomotive,  the 
steamer  and  the  electric  flash  which  destroyed  the  long 
honored  shoemaker’s  bench  and  his  primitive  tools  for  mak- 
ing shoes  and  which  substituted  for  small  shops  and  house 
industry  large  centrally  located  establishments  from  which 
great  masses  of  products  are  yearly  distributed  to  every 
nook  and  corner  of  the  globe. 

The  sensitiveness  of  modern  business,  a demand  for 
goods  in  one  locality  makes  the  whole  world  vibrate  with 
the  news  of  it;  the  despatch  with  which  wares  are  shipped 
from  place  to  place  at  short  notice,  and  the  small  cost  of 
transportation  have  compelled  people  to  inventiveness, 
activity,  eagerness  to  adopt  every  new  mechanism  which 
permits  them  to  meet  competition  and  perhaps  to  reach 
out  for  their  share  in  the  world’s  trade  and  the  profits  it 
brings. 

The  network  of  commercial  routes  which  cross  and  re- 
cross the  world  in  many  directions  and  which  are  so  ca- 
pably managed  and  used  by  modern  commerce  produced 
many  notable  results.  A line  of  transportation  4 4 makes 
the  whole  world  kin.”  The  possibility  to  display  tropical 
fruits  in  the  shops  of  New  York  and  Boston  in  the  midst 
of  severe  winter  weather  and  to  sell  them  advantageously 
has  awakened  from  legarthy  many  districts  in  Porto  Rico, 
Cuba,  Jamaica  and  other  West  Indian  Islands,  and  the 
introduction  to  the  most  remote  corners  of  the  earth  of 
ready-made  garments,  tinned  meats  and  canned  fruits  and 
vegetables,  of  kerosene  and  various  utility  articles  has 
transformed  the  lives  of  millions. 


40 


SIMON  LITMAN 


Our  commerce  has  taken  on  some  remarkable  aspects. 
The  shipping  of  coals  to  Newcastle  is  today  a reality  which 
has  assumed  many  extraordinary  forms.  The  improved 
commercial  route  permitted  the  shipment  of  sauerkraut 
from  Chicago  to  Hamburg,  of “Rhine  wine”  from  California 
to  Germany,  of  potatoes  from  Maine  to  Ireland,  of  cut- 
lery from  Pittsburg  to  Sheffield  and  of  cotton  goods  from 
New  England  to  Manchester.  The  improved  route  led  also 
to  the  migration  of  thousands  of  Slavs  from  the  agricul- 
tural communities  of  Russia  and  Austria-Hungary  to  the 
slaughtering  and  meat-packing  establishments  and  to  the 
steel  mills  of  Chicago  and  has  helped  to  rear  our  modern 
cities  with  their  slums,  poverty,  squalor  and  degradation 
on  one  hand,  and  splendor,  luxury  and  achievements  on 
the  other. 

Another  important  result  of  improved  means  of  trans- 
portation was  the  settlement  of  new  countries,  possessing 
virgin  soil  and  abundant  mineral  resources.  These  coun- 
tries, by  means  of  steamers,  were  connected  with  each 
other  and  with  the  old  world.  It  was  this  that  made  it 
possible  for  the  densely  populated  districts  of  northwest- 
ern Europe  to  become  great  manufacturing  centers,  draw- 
ing a large  part  of  their  food  supplies  and  raw  materials 
from  America,  Asia,  Africa  and  Australia,  and  exporting 
manufactured  products  in  exchange.  It  led  to  specializa- 
tion in  the  industrial  world,  with  all  the  benefits  which 
accrue  from  such  a specialization  adapted  to  natural  con- 
ditions and  to  historic  influences. 

Modern  commercial  routes  of  national  and  international 
significance  are  either  railways  or  waterways. 

Public  Highways. 

Public  highways  are  of  enormous  value  for  local  traffic 
and  as  feeders  of  railways;  because  of  this  their  improve- 
ment cannot  be  urged  too  strongly;  but  for  long  distance 
transportation  they  do  not  meet  our  present  requirements 


TRADE  AND  COMMERCE 


41 


of  speed,  safety  and  cheapness,  and  they  are  therefore 
used  only  in  exceptional  cases,  where  no  other  facilities 
exist. 

Common  highways  are  comparatively  inefficient  be- 
cause of  the  great  amount  of  friction  between  the  road  and 
the  vehicle,  and  everything  that  tends  toward  eliminat- 
ing this  is  of  vast  commercial  value.  The  greater  the  fric- 
tion, the  more  difficult  is  the  advantageous  use  of  large 
vehicles  and  of  mechanical  motors. 

According  to  some  computations  (it  is  difficult  to  arrive 
at  exact  estimates),  if  we  consider  the  amount  of  friction 
on  the  canal  as  1,  it  equals  5 on  a railway,  33  on  a macadam- 
ized road  and  80  on  an  ordinary  highway.  The  respective 
efficiency  of  various  roadbeds  would  perhaps  be  made 
clearer,  if  we  realize  that  if  one  horse  can  pull  a given  load 
on  iron  rails,  it  will  be  able  to  move  about  one-half  of  the 
same  load  on  asphalt  pavement,  one-seventh  of  it  upon 
good  cobble  stone,  one-twentieth  upon  an  earth  road  and 
one-fortieth  upon  sand.  The  figures  show  not  only  the 
superiority  of  waterways  and  railways  over  common  high- 
ways, but  also  the  comparative  efficiency  of  the  various 
kinds  of  highways. 

Most  of  the  ordinary  wagon  roads  in  the  United  States 
have  been  neglected.  Our  vast  stretches  of  sparsely  popu- 
lated territory  needed  the  service  of  railways;  and  rail- 
ways were  therefore  built  with  a rapidity  unknown  in  any 
other  part  of  the  world ; but  we  must  not  overlook  the  fact, 
which  is  each  day  brought  home  to  us  with  greater  force, 
that  our  commerce  and  general  intercourse  are  dependent 
upon  public  roads,  that  neither  the  railway,  nor  the  water- 
way can  replace  them  in  their  many  important  functions; 
that  almost  every  commodity  at  some  period  of  its  com- 
mercial existence  is  conveyed  over  a public  highway  (from, 
to  or  at  the  terminals)  and  that  the  cost  of  such  transporta- 
tion bears  heavily  upon  the  price  of  goods.  It  has  been 
estimated  that  the  bad  roads  in  the  United  States  cost 


42 


SIMON  LITMAN 


the  people  about  $500,000,000  a year;  the  estimate  cannot 
be  substantiated  by  definite  data,  but  it  certainly  is  very 
suggestive.  It  costs  less  to  transport  commodities  from 
New  York  to  San  Francisco  or  from  Melbourne  to  London, 
than  it  does  at  some  seasons  to  move  them  a few  miles 
over  many  of  our  common  roads. 

Good  roads  would  be  of  incalculable  value  to  our  farmers 
by  giving  them  a greater  period  of  time  for  the  market- 
ing of  crops  and  by  increasing  the  number  of  market  places 
which  they  could  reach;  they  would  help  the  population 
of  our  towns  and  cities  by  enabling  them  to  buy  farm  prod- 
ucts more  cheaply  than  they  do  now.  Existing  road  con- 
ditions compel  farmers  to  market  their  products  at  certain 
times  of  the  year,  and  all  products  at  the  same  time.  The 
overstocking  of  the  city  market  forces  the  price  down  to 
the  detriment  of  the  farmer,  but  without  benefiting  the  final 
consumer.  The  produce  is  bought  up  by  commission  mer- 
chants and  speculators  in  general,  and  after  this  is  done 
the  price  is  raised.  Good  roads  would  aid  in  changing  all 
this,  as  well  as  in  improving  the  character  of  farming  in 
many  of  our  rural  communities;  they  would  permit  the 
planting  of  flowers  and  vegetables,  the  raising  of  poultry, 
etc.,  in  localities  which  with  present  conditions  of  trans- 
portation are  unable  to  market  perishable  goods.  They 
would  permit  the  country  merchant  to  replenish  his  stores 
as  the  occasion  demands  instead  of  filling  his  warerooms 
with  merchandise  in  anticipation  of  bad  weather,  thus  im- 
mobilizing his  capital,  stretching  his  credit  and  compelling 
his  customers  to  use  stale  goods. 

Good  roads  would  benefit  railways  by  freeing  them 
from  unnecessary  spasmodic  transportation;  at  present, 
notwithstanding  the  fact  that  railways  are  spending  large 
sums  of  money  on  their  rolling  stock,  they  are  at  times 
unable  to  handle  the  freight,  while  at  other  times  a large 
part  of  their  equipment  is  idle  because  no  produce  can  be 
brought  to  or  from  the  stations. 


TRADE  AND  COMMERCE 


43 


When  we  come  to  consider  the  work  of  improving  wagon 
roads  the  problem  confronting  us  is:  what  shall  be  the 
character  of  the  improvements?  Those  technically  best  are 
not  always  the  most  desirable  economically.  A steel 
bridge  is  a vast  improvement  over  a wooden  trestle,  and 
many  magnificent  steel  bridges  stand  as  monuments  to  the 
technical  skill  and  to  the  business  acumen  of  our  age,  but 
who  would  advise  constructing  a steel  bridge  over  a wide 
river  in  order  to  connect  two  small  village  communities 
lying  outside  the  regular  transcontinental  traffic?  We 
spend  large  sums  of  money  to  lay  asphalt  pavements  in 
the  residential  districts  of  our  prosperous  cities,  but  a ma- 
cadamized road  is  all  we  need  and  can  hope  for  in  rural 
communities.  It  is  true  that  to  some  extent  roads  create 
traffic,  but  this  additional  traffic  can  be  taken  into  con- 
sideration at  the  time  of  making  improvements;  we  can 
estimate  it  more  or  less  accurately  if  we  know  the  geo- 
graphical position  of  the  place,  its  resources,  the  density 
of  its  population  and  the  character  of  the  people. 

The  initial  cost  of  constructing  a common  wagon  road 
is  small  as  compared  with  the  expense  of  building  a rail- 
way or  a canal,  but  the  cost  of  maintenance  is  compara- 
tively high,  and  a poorly  built  road  in  case  of  heavy  traffic, 
for  which  it  is  not  adapted,  is  a continuous  source  of  out- 
lay for  repairs. 

Railroads  and  Inland  Waterways. 

Steam  and  electric  railroads  represent  the  highest 
types  of  land  transportation.  The  part  railroads  have 
played  in  the  economic  development  of  the  United  States 
and  in  other  countries  is  too  well  known  to  need  here  any- 
thing more  than  general  mention. 

The  United  States  possesses  over  230,000  miles  of  rail- 
roads, which  is  more  than  the  combined  railway  mileage 
of  all  Europe.  In  1908,  the  American  railways  carried 
close  to  2,000,000,000  tons  of  freight  and  about  900,000,000 


44 


SIMON  LITMAN 


passengers.  In  1889  the  amount  of  freight  carried  was  540,- 
000,000  tons  and  the  number  of  passengers  was  472,000,- 
000.  The  amount  of  freight  carried  in  Great  Britain  and 
Ireland  was  297,000,000  tons  in  1889,  and  444,000,000  tons 
in  1903;  the  number  of  passengers  775,000,000  in  1889,  and 
1,195,000,000  in  1903.  Our  steam  railroads  carry  fewer 
passengers  than  those  of  England  because  our  electric  trac- 
tion trolley  lines  are  more  developed. 

Products  of  mines  represent  approximately  over  50  per 
cent  of  our  total  freight  tonnage,  with  manufactures  as  a 
poor  second  (about  13  per  cent),  closely  followed  by  the 
products  of  forests  and  of  agriculture. 

Regularity,  punctuality  and  speed  are  the  main  charac- 
teristics cf  railway  transportation,  characteristics  essen- 
tial for  the  movement  of  passengers,  mail  and  express  mat- 
ter, perishable  goods  and  all  objects  which  require  de- 
spatch and  are  able  to  pay  for  a quick  service.  Our  rail- 
roads also  carry  exceptionally  large  masses  of  very  heavy 
and  bulky  commodities  which  frequently  overtax  their 
carrying  capacity.  Such  transportation  of  heavy  and 
bulky  goods  has  disadvantages  for  both  the  shippers  and 
the  railroads.  Railroads  must  charge  for  this  kind  of 
service  very  low  rates,  often  out  of  proportion  with  their 
efficiency,  otherwise  the  freight  will  not  be  moved  at  all, 
not  being  able  to  stand  high  transportation  charges;  but 
however  low  the  price,  it  is  usually  too  high  for  the  ship- 
per, whose  cement,  coal  or  iron  ore  could  be  moved  by 
means  of  shallow  inland  waterways  and  barge  canals  just 
as  well  as  by  railways  and  at  a much  lower  cost. 

Until  recently  most  of  the  rivers  in  the  United  States 
have  been  neglected.  Our  Government  appropriates  annu- 
ally, under  the  River  and  Harbor  Bill,  money  for  the  work 
of  dredging  river  channels  and  constructing  dams  and 
locks,  so  as  to  facilitate  shipping;  but  the  sums  raised  have 
been  comparatively  small,  and  a lack  of  interest  in  inland 
waterways  was  manifested  through  the  second  half  of  the 


TRADE  AND  COMMERCE 


45 


nineteenth  century  both  by  public  authorities  and  by  the 
people. 

At  the  beginning  of  the  railroad  era  it  seemed  for  a time 
as  though  railways  would  be  able  to  take  care  of  all  land 
traffic. 

The  possibility  of  reaching  a desired  point  and  of  reach- 
ing it  directly,  without  being  compelled  to  follow  a tor- 
tuous river  course,  of  overcoming  almost  any  obstacle  in 
the  configuration  of  land,  of  linking  different  lines  together 
and  thus  forming  a network  of  uniform  transportation  fa- 
cilities over  which  cargoes  can  be  moved  without  the  ne- 
cessity of  reloading  until  they  arrive  at  their  place  of 
destination,  are  some  of  the  advantages  of  railways.  To 
these  advantages  may  be  added  the  possibility  of  using 
railways  throughout  the  entire  year,  at  night  as  well  as  in 
the  day  time,  in  summer  as  well  as  in  winter. 

A heavy  snow  storm  may  stop  the  traffic  for  a short 
time,  but  tracks  are  quickly  cleared  and  trains  are  rushed 
on,  through  tunnels,  over  bridges  spanning  ice-bound 
rivers,  rapids  and  streams,  from  the  bottoms  of  valleys 
to  the  summits  of  mountains,  passing  fields,  orchards  and 
deserts,  mining  camps  and  factory  sites,  hamlets,  villages, 
and  cities,  stopping  here  and  there  and  speeding  on  again, 
bringing  passengers  and  freight  across  continents. 

If  to  the  fascinating  romance  of  railways,  we  add  the 
large  profits  which  they  yield,  we  can  easily  understand 
why  they  not  only  attracted  public  attention  and  absorbed 
the  technical  ability  of  the  world,  but  why  they  also  com- 
manded the  purse  of  the  capitalist,  and  why,  with  their 
coming,  the  river  and  the  canal  were  relegated  to  a second 
place.  But  the  steel  rail  and  the  locomotive  gave  such  an 
impetus  to  industry  and  commerce,  opened  to  the  toil  of 
man  so  many  fields  of  activity,  in  such  widely  scattered 
localities  that  they  are  no  longer  able  to  cope  with  the  re- 
sultant traffic,  notwithstanding  they  endeavor  to  meet  the 
requirements  of  an  ever-increasing  commerce.  Less  than 


46 


SIMON  LITMAN 


25  years  ago  the  average  capacity  of  our  freight  cars  was 
10  tons,  and  the  capacity  of  locomotives  was  20  to  30  of 
such  cars  to  the  train.  At  present  we  have  cars  holding 
up  to  50  tons  and  locomotives  drawing  from  80  to  90  of 
such  cars  loaded  to  their  full  capacity.  But  for  their  own 
good  and  for  the  good  of  the  country,  railways  must  be 
relieved  of  a certain  part  of  this  traffic. 

In  Europe  this  has  been  understood  earlier  than  in 
the  United  States,  and  the  river  and  the  barge  canal  play 
there  an  important  role  in  land  transportation. 

It  is  true  that  inland  waterways  may  to  some  extent 
act  as  competitors  of  railways;  they  may  keep  the  freight 
rates  down,  but  water  competition  is  not  so  dangerous  as 
the  early  railway  promoters  and  operators  pictured  it  to 
themselves.  High-grade  traffic  seeks  the  railway  and  is 
both  capable  and  willing  to  pay  the  charges;  improved 
waterways  tend  to  increase  the  tonnage  of  this  high-grade 
traffic  by  permitting  the  development  of  many  natural  re- 
sources and  deposits  which  cannot  be  touched  when  the 
high  cost  of  transportation  prevents  their  shipments  to 
the  manufacturing  plants. 

The  Pacific  and  the  Atlantic  coasts  of  the  United  States 
are  at  present  connected  by  five  great  transcontinental 
lines:  Union  and  Central  Pacific,  from  San  Francisco  to 
New  York,  via  Omaha;  Southern  Pacific,  from  San  Fran- 
cisco to  New  York,  via  New  Orleans;  Atchison,  Topeka  and 
Santa  Fe,  from  San  Diego  to  New  York,  via  Chicago; 
Northern  Pacific,  from  Seattle  to  New  York,  via  St.  Paul; 
and  Great  Northern,  from  Everett  to  New  York,  via  St. 
Paul. 

The  railways  of  the  United  States  are  private  corpora- 
tions; recently  they  have  been  consolidated  to  such  a de- 
gree that  practically  all  important  lines  have  passed  to 
the  control  of  a few  groups  of  financiers. 

In  many  countries  (Germany,  Eussia),  railways  are 
owned  and  controlled  by  the  state. 


TRADE  AND  COMMERCE 


47 


Inland  waterways  are  divided  into  natural  and  arti- 
ficial waterways.  The  natural  waterways  include  inland 
lakes  and  rivers,  even  when  the  latter  are  improved  by 
dredging  their  channels,  shortening  their  windings  or  by 
other  constructions  for  the  benefit  of  navigation.  Arti- 
ficial waterways  are  canals.  These  are  of  two  general 
classes:  those  constructed  to  connect  separate  waterways 
and  those  built  to  overcome  obstacles  to  navigation  pre- 
sented by  a river  or  a lake  course.  Most  of  the  canals  in 
the  United  States  belong  to  the  second  class,  a notable 
exception  to  it  being  the  Erie  Canal  connecting  the  Hudson 
River  and  the  Great  Lakes.  This  canal  is  being  enlarged 
at  an  expense  of  $100,000,000  by  the  State  of  New  York, 
and  when  the  improvements  are  completed,  it  will  be  able 
to  accommodate  mechanically  propelled  barges  of  1,000 
tons  capacity. 

The  relative  cost  of  transportation  on  various  inland 
routes  is  approximately  as  follows:  25  cents  per  ton  mile 
on  our  common  roads;  between  7 and  8 mills  on  our  rail- 
ways; about  3 mills  on  the  Erie  Canal.  In  1907  at  “The 
Soo”  canal  freight  was  carried  into  and  out  of  Lake  Super- 
ior at  8-10  of  one  mill  per  ton  mile  and  the  rate  on  coal 
from  Pittsburg  to  New  Orleans  was  only  1-3  of  one  mill 
(via  Ohio  and  Mississippi  rivers). 

There  are  in  the  United  States  287  streams  navigated 
for  an  aggregate  of  26,226  miles,  and  45  canals  with  a mile- 
age of  2,189,  besides  numerous  abandoned  canals. 

The  Ocean. 

The  ocean  is  the  great  highway  of  international  trade. 
In  many  instances  it  is  the  only  connecting  road  between 
nation  and  nation,  as  well  as  being  the  freest  and  the 
cheapest  of  all  means  of  transportation. 

Railways  require  an  expensive  artificial  roadbed,  the 
expense  varying  with  the  configuration  of  land  and  the  cost 
of  acquiring  the  right  of  way  if  the  territory  to  be  crossed 


48 


SIMON  LITMAN 


belongs  to  private  individuals  and  corporations;  common 
roads  must  be  improved  before  they  can  be  used  exten- 
sively and  advantageously  for  light  and  heavy  traffic; 
rivers  require  dredging,  canalization,  etc.,  but  the  ocean, 
the  vast,  deep  ocean,  requires  no  preparatory  work  and  is 
ever  ready  for  service.  In  addition  to  this,  it  offers  un- 
rivaled opportunities  for  using  the  most  powerful  motors 
and  the  largest  vehicles  that  modern  skill  and  ingenuity 
are  able  to  devise;  this  leads  to  the  utmost  utilization  of 
both  space  and  power  and  is  the  reason  of  the  cheapness 
of  the  ocean  freight  rates.  These  rates  are  less  than  land 
rates  because  it  costs  less  to  give  the  service  and  because 
of  the  fact  that  agreements,  combinations  and  consolida- 
tions are  so  much  easier  effected  in  case  of  railway  than  in 
case  of  ocean  transportation. 

It  requires  comparatively  little  capital  to  enter  as  a 
competitor  for  a share  of  the  world’s  traffic  on  sea;  the 
roadbed  is  given  by  nature,  the  harbors  are  open  to  all, 
terminal  facilities  being  usually  provided  by  municipali- 
ties, states  or  private  corporations,  if  individuals  own  the 
water  front;  the  vehicle  is  the  only  item  of  expense.  If 
one  contrasts  this  with  years  of  arduous  labor  and  the 
tremendous  investments  of  capital  involved  in  the  con- 
struction of  a transcontinental  line,  one  will  realize  why 
railway  transportation  tends  to  monopoly,  while  water 
transportation  is  open  to  the  play  of  free  competition. 

Traffic  agreements  amongst  ocean  carriers  have  been 
frequently  concluded,  but  they  are  usually  unstable.  The 
incentive  to  cut  rates  and  thus  obtain  a temporary  ad- 
vantage of  increased  traffic  is  too  tempting  for  many  of  the 
ship  owners  to  withstand,  especially  in  dull  times,  and  then 
there  is  the  ever-present  possibility  of  new  competitors 
entering  the  field.  There  is  no  bar  to  the  ship  owner’s 
transferring  his  activity  from  one  ocean  route  to  another; 
there  is  nothing  that  can  keep  the  individual  ship  from 
entering  any  harbor  where  there  is  freight  and  offering  her 


TRADE  AND  COMMERCE 


49 


services,  irrespective  of  conferences  and  agreements 
amongst  companies  which  do  the  work  regularly. 

Ocean  commerce  is  maintained  by  steamers  and  by  sail- 
ing vessels. 

The  sailing  vessel  is  to  a very  large  extent  dependent 
upon  winds,  currents  and  weather  conditions  in  general; 
this  has  an  important  bearing  upon  her  usefulness.  The 
steamer,  with  a much  greater  power  of  guidance  and  re- 
sistance, is  influenced  in  her  course  by  different  factors 
than  those  which  influence  a sailer.  The  desire  to  save 
time 'and  fuel  leads  the  steamer  to  go  in  more  or  less 
straight  lines,  deviations  being  made  only  to  avoid  rocks, 
icebergs  and  very  thick  fog.  Therefore,  the  sailing  ves- 
sel crosses  the  sea  more  slowly  than  the  steamer,  not  only 
because  her  speed  is  usually  unequal  to  that  of  the  latter, 
but  also  because  of  the  fact  that  she  can  seldom  use  the 
shortest  distance  between  two  points;  her  movements  are 
more  or  less  lateral,  and  she  is  often  compelled  to  go 
hundreds  of  miles  out  of  her  course  in  search  of  favorable 
or  to  avoid  unfavorable  conditions.  This  makes  the  sail- 
ing vessel,  in  addition  to  being  slow,  a nondependable  me- 
dium of  transportation,  unfit  for  such  traffic  as  requires 
speed  and  punctuality.  Few  of  our  business  transactions 
can  stand  delays  and  uncertainty  of  deliveries.  This  ex- 
plains why  sailing  vessels,  notwithstanding  their  compara- 
tively cheap  rates,  are  being  rapidly  displaced  upon  all 
seas  by  the  more  expensive  steamers. 

The  sailer’s  rates  are  lower  than  those  of  the  steamer 
because  the  cost  of  her  construction  is  small,  her  motor 
power  is  provided  by  nature,  and  as  machinery  occupies 
an  insignificant  part  of  her  space,  practically  all  of  her 
room  is  available  for  freight.  Only  about  5 per  cent  of 
the  carrying  capacity  in  a sailing  vessel  is  lost,  as  com- 
pared with  an  approximate  loss  of  35  per  cent  in  a steam- 
er. 


B — IT— 4 


50 


SIMON  LITMAN 


The  respective  position  of  the  steamer  and  the  sailer 
as  carriers  of  freight  (passenger  traffic  has  passed  to  the 
steamer  entirely)  may  be  judged  from  the  following  fig- 
ures. In  1875  the  gross  tonnage  of  sailing  vessels  was 
14,523,000  tons;  that  of  the  steamers  5,226,000  tons;  in  1904 
the  sail  tonnage  fell  to  7,812,000  tons,  and  the  steam  ton- 
nage increased  to  27,900,000  tons.  The  data  do  not  show 
the  exact  proportion  of  the  work  done  by  the  two  carriers, 
as  the  efficiency  of  the  steamer,  because  of  the  rapidity 
with  which  she  delivers  cargoes  and  is  ready  for  new  ser- 
vice, must  be  placed  much  higher  than  the  efficiency  of 
a sailer;  it  is  usually  considered  as  4 for  steam  to  1 in 
favor  of  sail.  If  we  take  the  matter  of  respective  efficiency 
into  account,  we  come  to  the  conclusion  that  in  1904  not 
more  than  about  5 per  cent  of  the  world’s  shipping  was 
done  in  sailing  vessels. 

The  present  most  conspicuous  uses  of  the  sailer  are 
in  the  lumber  coasting  trade  in  America  and  in  other  parts 
of  the  world,  in  the  carriage  of  grain  from  Pacific  Coast 
harbors  to  Europe,  and  of  nitrate  of  soda  from  Chile;  but 
even  in  these  cases  sailers  are  losing  ground;  specially 
constructed  steamers  to  meet  the  requirements  of  this 
traffic  are  driving  them  from  their  last  field  of  regular 
activity,  leaving  for  them  only  spasmodic  trade  over  long 
distances. 

The  sailing  vessel  is  often  a desirable  vehicle  for  goods 
on  hand  sold  for  future  delivery,  A long  voyage  is  then 
welcome  because  it  saves  storage  expenses  at  either  or 
both  terminals. 

Steamship  transportation  may  be  divided  into  regular 
(line)  and  irregular  (charter)  traffic. 

Those  parts  of  modern  commerce  which  require  punc- 
tual and  regular  deliveries,  such  as  the  shipment  of  high- 
grade  goods,  of  mail  and  express  matter,  cannot  depend 
upon  the  spasmodic  services  of  a chartered  ship.  These 


TRADE  AND  COMMERCE 


51 


articles,  just  as  passengers,  require  definitely  known  dates 
of  departure  and  arrival,  the  keeping  up  of  a schedule. 

Line  traffic  is  maintained  between  harbors  which  by 
the  amount  and  character  of  their  shipping  warrant  such 
a service  (New  York,  Philadelphia,  New  Orleans,  San 
Francisco,  London,  Liverpool,  Hamburg,  etc.).  It  entails 
many  expenses  not  to  be  found  in  the  charter  traffic.  The 
maintenance  of  a schedule  is  costly  as  the  vessel  must  de- 
part upon  a certain  date,  whether  she  is  fully  loaded  or 
not,  and  if  she  is  loaded  before  time,  she  must  wait  for 
her  scheduled  date.  Harbors  indicated  in  the  schedule 
must  be  entered,  whether  the  cargoes  warrant  this  or  not. 
Because  of  these  conditions  extensive  advertising  cam- 
paigns are  conducted,  especially  in  order  to  attract  pas- 
senger (tourist  and  emigrant)  traffic.  The  notice  in  the 
newspaper,  the  magazine  article,  the  chromo,  the  illustrat- 
ed booklet,  the  luxuriously  appointed  office,  the  persua- 
sive agent  are  some  of  the  expenses  of  line  traffic  not  char- 
acteristic of  charter  transportation.  To  these  we  may  add 
the  greater  cost  of  constructing  liners  and  larger  expense 
of  operating  them  (more  numerous  crews,  greater  con- 
sumption of  coal,  etc.).  On  the  other  hand,  the  superior- 
ity of  the  line  traffic  service  commands  a higher  freight 
and  passenger  rate. 

Charter  Traffic. — Amongst  the  hundreds  of  the  world’s 
ports,  there  are  comparatively  few  whose  commerce  is  suf- 
ficiently large,  diversified  and  evenly  distributed  through- 
out the  year  to  keep  line  steamers  busy.  Most  of  the  har- 
bors have  only  a few  commodities  for  shipment,  and  these 
only  at  certain  seasons  of  the  year.  Goods  shipped  from 
these  harbors  are  usually  raw  or  half-finished  materials, 
inexpensive,  heavy  and  bulky.  This  traffic  is  carried  on 
by  independent  cargo  boats,  called  tramps,  which  are  char- 
tered by  the  shippers  as  the  occasion  warrants.  The  traf- 
fic is  known  as  charter  traffic.  The  difficult  work  of  bring- 
ing ships  to  the  cargoes  and  providing  cargoes  for  ships 


52 


SIMON  LITMAN 


evolves  upon  ship  brokers  and  steamship  agents,  and  is 
made  possible  only  through  a careful  organization.  A 
chain  of  correspondents  in  all  countries  keeps  the  steam- 
ship agents  posted  of  the  requirements  of  the  widely  scat- 
tered harbors  and  of  the  whereabouts  of  the  thousands 
of  tramp  steamers  which  rove  the  seas  in  quest  of  freight. 

Ship  owners  when  making  contracts  consider  possibili- 
ties of  return  cargoes  and  make  their  charges  according^. 
The  amount  of  freight  moved  to  and  from  a point  is  not 
always  the  same  in  both  directions.  This  often  necessi- 
tates the  sending  of  ships  to  places  where  no  return  freight 
may  be  procured.  Shipments  offered  by  the  near-by  ports 
are  then  considered.  A ship  owner  may  accept  freight 
at  a certain  rate  from  Liverpool  to  Paraguay,  because  he 
can  get  a cargo  from  Argentine  to  the  United  States  and 
from  the  latter  place  to  Europe.  If  no  cargo  can  be  pro- 
cured, vessels,  for  the  purpose  of  sea-steadiness,  must  carry 
ballast.  Modern  large  steamers  have  compartments  for 
water  ballast,  which  insures  quick  loading  and  unloading, 
the  operation  not  interfering  with  any  other  work  on  the 
steamer;  but  most  of  the  cheaply  constructed  charter  ves- 
sels lack  such  compartments,  and  thousands  of  tons  of 
stone  and  sand  are  carried  by  these  steamers  from  port 
to  port.  Because  of  the  necessity  for  carrying  ballast  any 
freight  is  considered  better  than  none,  and  ships  are  will- 
ing to  take  it  at  any  price.  Coal  is  frequently  such  freight; 
the  transoceanic  shipments  of  coal  have  been  made  possi- 
ble by  the  uneven  distribution  of  traffic  in  both  directions. 
Vessels  can  be  chartered  at  a rate  of  from  7 to  8 shillings 
a ton  from  Newcastle  or  Cardiff  to  San  Francisco,  because 
of  the  return  cargo  of  wheat  from  the  last-named  harbor, 
wheat  paying  for  the  same  distance  from  40  to  50  shill- 
ings a ton.  Japan  exports  coal  notwithstanding  her  need 
for  it  at  home  and  its  comparatively  poor  quality,  because 
Japan  is  an  importer  of  bulky  freight  and  has  only  light 
cargoes  for  return  shipments. 


TRADE  AND  COMMERCE 


53 


Ocean  Routes. — Ocean  transportation  is  similar  to  land 
transportation  in  that  it  has  both  main  routes  and  branch 
lines  or  feeders. 

The  chief  ocean  route  is  the  one  leading  from  eastern 
North  America  to  western  Europe.  Its  trunk  line  con- 
nects New  York  and  other  Atlantic  ports  of  the  United 
States  and  Canada  with  the  harbors  of  Great  Britain,  Ger- 
many and  France.  This  North  Atlantic  trunk  route  has 
a number  of  feeders  from  and  to  the  ports  of  the  Mediter- 
ranean and  Baltic  Sea  in  Europe  and  the  Gulf  of  Mexico 
and  the  Caribbean  Sea  in  the  United  States. 

The  route  second  in  importance  to  the  North  Atlantic 
is  the  one  to  the  Orient  via  the  Mediterranean  and  the 
Suez^  Canal.  It  connects  the  eastern  part  of  the  United 
States  and  western  and  southern  Europe  with  India,  the 
East  Indies,  China  and  Japan.  Sailing  vessels  are  barred 
from  this  route  because  of  the  unfavorable  winds  in  the 
Mediterranean,  the  rocks,  narrow  passages  and  calms  in 
the  Red  Sea,  and  the  high  tolls  at  Suez. 

The  South  African  route  is  used  for  trade  with  South 
Africa,  Australia  and  New  Zealand.  The  route  is  often 
called  Good  Hope  Route  because  it  curves  at  the  Cape 
of  Good  Hope  around  the  African  continent.  It  is  an  es- 
pecially good  sailing  track,  in  view  of  the  regularity  of 
the  prevailing  winds  in  the  tropics,  and  of  all  the  sail- 
ing lines,  this  is  the  most  extensively  used. 

A route  around  South  America  (Cape  Horn  Route) 
connects  the  Pacific  coast  of  North  and  South  America 
with  the  Atlantic  coast  of  America  and  Europe. 

The  Pacific  Ocean  route  unites  western  North  America 
with  eastern  Asia.  Following  the  great  circle  (which  be- 
cause of  the  spherical  shape  of  the  earth  is  the  shortest 
distance  between  two  points),  it  skirts  the  ocean  at  a high 
latitude;  only  those  steamers  which  call  at  Hawaii  pass 
farther  south  into  mid-ocean  and  thus  add  considerably  to 
their  distance,  more  than  800  miles.  The  lines  originate 


54 


SIMON  LITMAN 


at  Puget  Sound,  Portland,  San  Francisco  and  San  Diego 
in  the  United  States  and  Manzanillo  in  Mexico  and  con- 
verge at  Yokohama,  radiating  from  there  to  other  Japa- 
nese ports,  to  Manila,  or  to  the  mainland  of  the  Asiatic 
Continent. 

The  Pacific  coast-Australasian  trunk  line  leads  from 
San  Francisco,  Puget  Sound  and  Vancouver  to  the  ports 
of  Australia  and  New  Zealand  (Melbourne,  Sydney,  Auk- 
land,  etc.).  The  course  is  either  via  Honolulu  or  via  Tahiti 
in  the  Society  Islands. 

The  enumerated  routes  are  the  main  avenues  of  the 
world’s  commerce,  but  they  are  far  from  giving  a com- 
plete idea  of  all  ocean  lines,  uniting  the  hundreds  of  sea- 
ports, lines  running  into  and  overlapping  each  other. 

Ship  Canals  connecting  great  bodies  of  water  and  of 
sufficient  depth  and  width  to  accommodate  modern  steam- 
ers are  few  in  number  and  of  comparatively  recent  con- 
struction. The  oldest  of  these  artificial  waterways  is  the 
Suez  Canal,  connecting  the  Mediterranean  with  the  Red 
Sea;  it  was  completed  in  1869.  The  canal  is  the  longest  of  all 
the  existing  canals,  its  total  length  being  90  miles.  It  was 
enlarged  in  1896,  and  its  present  dimensions  give  it  a depth 
of  31  feet  (at  low  water)  and  a width  at  the  bottom  of 
108  feet  and  at  the  surface  of  420  feet.  The  proposed 
new  enlargement,  necessitated  by  the  ever-increasing  size 
and  draught  of  the  steamers,  will  increase  the  depth  to 
34.5  feet;  the  work  is  now  in  progress.  The  cost  of  the 
canal  in  its  present  form  is  about  $100,000,000.  The  num- 
ber of  vessels  that  passed  it  increased  from  486  with  a 
gross  tonnage  of  655,000  tons  in  1870  to  3,441  with  a gross 
tonnage  of  13,700,000  tons  in  1900.  The  canal  has  no 
locks,  being  at  the  sea-level  its  entire  distance.  Pas- 
sages are  made  at  night  as  well  as  in  the  day,  electric 
lights  being  installed  throughout  the  length  of  the  canal. 
The  tolls  charged  are  slightly  over  $2  per  ton. 


TRADE  AND  COMMERCE 


55 


The  great  commercial  significance  of  the  Suez  Canal 
lies  in  the  fact  that  it  saves  nearly  3,000  leagues  on  the 
voyage  from  the  harbors  of  western  Europe  to  the  East. 
Its  effect  upon  shipping  to  and  from  the  countries  of  the 
Orient  (India,  China,  Japan)  was  immediate  and  decisive; 
because  of  it,  the  steamer  replaced  the  sailing  vessel  in 
the  oriental  trade,  and  goods  instead  of  being  on  the  road 
the  larger  part  of  the  year  reach  their  destination  in  a 
few  weeks. 

The  Kaiser  Wilhelm  Canal,  completed  in  1895,  connects 
the  Baltic  and  the  North  seas;  it  lies  within  German  terri- 
tory. The  length  of  the  canal  is  61  miles  and  its  depth 
29  1-2  feet.  Although  constructed  chiefly  for  military  pur- 
poses (to  strengthen  the  German  navy),  it  benefits  com- 
merce by  making  it  possible  for  the  merchant  vessels  to 
dispense  with  the  route  around  Denmark.  Its  tonnage 
approximates  5,500,000  tons  a year. 

The  Corinth  Canal,  the  least  important  of  the  now  ex- 
isting canals  constructed  to  shorten  ocean  routes,  was  com- 
pleted in  1893.  It  is  four  miles  long  and  connects  the 
Gulf  of  Corinth,  in  Greece,  with  the  Gulf  of  Aegina.  Al- 
though the  tolls  are  only  18  cents  per  ton,  the  traffic  is 
much  smaller  than  was  estimated,  most  of  the  larger  ships 
preferring  the  open  sea  route.  The  bottom  width  of  the 
canal  is  only  about  68  feet  and  its  depth  is  a little  over 
26  feet.  The  cost  of  construction  was  $13,750,000. 

The  Panama  Canal,  when  completed,  will  have  a far- 
reaching  effect  upon  the  shipping  and  the  commerce  of 
the  world.  It  will  shorten  considerably,  the  routes  con- 
necting the  Pacific  coast  of  North,  Central  and  South 
America  with  the  Gulf  and  the  Atlantic  ports  of  Mexico, 
the  United  States,  and  Canada,  as  well  as  the  routes  con- 
necting the  Atlantic  seaboard  with  China,  Japan  and 
Australia.  As  projected,  it  will  have  a depth  of  35  feet 
and  will  cost  close  to  $200,000,000. 


56 


SIMON  LITMAN 


Of  the  canals  built  for  the  purpose  of  extending  an 
ocean  route  from  the  sea  inland  the  most  recent  and  most 
important  is  the  Manchester  Ship  Canal,  constructed  at 
a cost  of  $75,000,000.  It  is  35  1-2  miles  long  and  has  a 
depth  of  26  feet  at  low  water;  the  depth  is  being  increased 
at  present  to  28  feet.  The  canal  made  Manchester  a sea- 
port. 

The  Sault  St.  Mary’s  Fall  Canals,  one  belonging  to  the 
United  States,  another  to  Canada,  connect  Lake  Superior 
with  Lake  Huron.  The  registered  tonnage  of  steamers 
that  passed  the  canals  in  1900  was  close  to  20,000,000  tons, 
or  considerably  larger  than  the  Suez  Canal  tonnage. 

Other  ship  canals  are  the  Willard  Canal  between  Lake 
Ontario  and  Lake  Erie,  around  Niagara  Falls,  in  Canada, 
the  Elba  and  Trave  Canal,  in  Germany,  and  the  Cyonstadt 
and  St.  Petersburg  Canal,  in  Russia. 

VI.  INDUSTRIAL  AND  COMMERCIAL  CENTERS. 

Modern  cities  are  centers  for  collecting,  manufactur- 
ing, storing  and  distributing  commodities;  therefore,  their 
sites  are  determined  by  those  factors  which  lead  towards 
localization  of  industry  and  commerce  in  a particular  ter- 
ritory and  by  those  elements  which  tend  towards  concen- 
trating the  work  upon  a limited  area.  The  causes  of  local- 
ization were  considered  in  IV ; as  to  the  concentration  of 
industry,  and  the  growth  of  cities,  they  are  brought  about: 

(1)  by  the  complexity  of  modern  manufacturing  processes 
requiring  large  establishments  and  complicated  machinery, 

(2)  by  the  demand  for  masses  of  cheap  goods  of  a stand- 
ard type  and  quality  the  sale  of  which  is  made  possible 
and  profitable  only  through  large  outputs  from  mills  and 
factories  employing  many  laboring  hands,  (3)  by  the  im- 
provements in  the  means  of  transportation  which  break 
up  small  local  industries,  giving  a decided  advantage  to 
those  centers  where  goods  may  be  produced  cheaply.  Im- 
proved means  of  locomotion  are  perhaps  responsible  for 


TRADE  AND  COMMERCE 


57 


the  growth  of  cities  more  than  any  other  single  factor. 
In  addition  to  permitting  the  distribution  of  city  products, 
they  supply  urban  populations  with  the  necessary  provis- 
ions (milk,  eggs,  fruit,  vegetables,  fish,  etc.)  and  encour- 
age and  facilitate  the  spreading  of  residential  districts 
by  keeping  them  in  touch  with  the  centrally  located  busi- 
ness sections. 

In  most  cities  there  is  a close  inter-relation  of  the  in- 
dustrial and  commercial  activities;  mills  and  factories 
bring  with  them  offices  for  the  sale  of  goods,  as  well  as 
a body  of  brokers  or  intermediaries  between  buyers  and 
sellers;  they  make  necessary  warehouses  for  storing  mer- 
chandise, shipping  agencies,  insurance  companies  and 
banks;  the  country  inn  becomes  a large  hotel,  the  small 
accommodation  shop  a department  store;  wholesale  and 
retail  districts  make  their  appearance;  and  thus  we  have 
a modern  city,  with  huge  railway  terminals,  newspaper 
offices  and  theaters,  educational  and  philanthropic  insti- 
tutions; a city  with  all  its  ceaseless  activity,  drawing  upon 
the  resources  of  the  surrounding  localities,  which  fall  with- 
in the  sphere  of  its  influence,  exchanging  the  goods  of 
these  localities  for  products  of  other  regions  both  at  home 
and  abroad.  The  size  of  the  city  is  largely  determined 
by  the  size  and  the  economic  value  of  its  hinterland,  its 
tributary  territory. 

A modern  city  is  primarily  a center  of  exchange,  and 
if  some  of  our  towns  developed  from  manufacturing  cen- 
ters, in  places  where  abundance  of  fuel  and  raw  materials 
made  their  existence  possible,  most  of  the  largest  cities 
of  today  were  not  influenced  either  in  their  birth  or  in 
their  growth  by  these  factors. 

The  leading  cities  of  the  United  States,  with  the  ex- 
ception of  Washington — our  national  capital,  are  located 
either  on  the  seacoast  (Boston,  New  York,  Philadelphia, 
Baltimore,  New  Orleans,  San  Francisco,  Seattle,  or  on 
the  Great  Lakes  and  the  navigable  ports  of  the  Mississippi 


SIMON  LITMAN 


and  Ohio  rivers  (Milwaukee,  Chicago,  Detroit,  Cleveland, 
Buffalo,  Minneapolis,  St.  Louis,  Cincinnati  and  Pittsburg). 
In  other  countries  we  find  the  same  conditions : the  largest 
cities  are  either  near  the  open  sea  or  on  the  banks  of  navi- 
gable rivers  or  lakes. 

Some  of  the  inland  towns  grew  because  they  were  locat- 
ed at  a place  where  numerous  railways  met,  just  as  some 
of  the  older  cities  owed  their  prosperity  to  the  fact  that 
they  were  established  at  places  where  a number  of  over- 
land trade  routes  crossed  or  converged.  Indianapolis  and 
Denver  are  good  illustrations  of  the  first  case,  Vienna  and 
Paris  of  the  second. 

A number  of  other  causes  have  led  to  the  building  of 
cities  on  their  present  sites.  Proximity  to  water  power 
has  caused  the  establishment  of  a number  of  towns  in  New 
England  and  in  the  North  Atlantic  States;  strategic  rea- 
sons called  for  military  stations  and  posts,  and  under  their 
protection  trading  centers  developed;  a convenient  posi- 
tion in  a prosperous  agricultural  community  or  in  any 
other  productive  region  may  act  as  a stimulus  towards 
creating  a local  social  and  business  center,  etc. 

Good  harbors  are  of  paramount  importance  to  a na- 
tion. Such  harbors  must  not  only  be  advantageously  sit- 
uated on  an  indented  coast  line,  sheltered  from  adverse 
influences  but  they  also  must  be  properly  constructed  and 
effectively  managed.  Without  such  harbors  the  commerce 
of  a country  is  sorely  handicapped.  There  is  a correlation 
between  the  ship,  a unit  of  transportation,  and  the  harbor, 
her  terminal.  Harbors  are  the  work  of  nature  and  man;  in 
some  places  nature  9s  contribution  is  of  such  character  as 
to  make  the  work  of  man  comparatively  easy;  nature  pro- 
vides a spacious  bay  with  a safe  entrance  to  it;  it  gives 
depth  of  water,  exemption  from  sands  and  rocks,  freedom 
from  heavy  tides  and  dangerous  winds.  But  in  no  in- 
stance has  a modern  seaport  developed  and  assumed  a 
commanding  position  in  international  trade  by  relying  upon 


TRADE  AND  COMMERCE 


59 


natural  advantages  alone.  Nearly  all  harbors  require  more 
or  less  heavy  expenditures  to  fit  them  for  shipping;  they 
require  permanent  waterfront  improvements,  extensive 
piers,  electric  and  hydraulic  cranes  for  loading  and  un- 
loading, warehouses  and  elevators;  most  of  them  demand 
also  the  extending  and  deepening  of  channels  leading  to 
and  from  the  harbor,  and  this  latter  demand  becomes  more 
and  more  urgent  because  of  the  increased  size  and  draught 
of  the  sea-going  steamers. 

The  harbors  of  the  past  were  all  situated  on  navigable 
rivers;  they  could  be  easily  located  at  some  distance  from 
the  sea,  because  the  small  dimensions  of  the  ships  per- 
mitted their  penetration  inland;  a fortunate  circumstance 
since  land  transportation  was  both  inadequate  and  costly. 
As  ships  increased  in  size  many  of  the  river  ports  lost 
temporarily  their  significance,  the  approach  to  them  being 
too  difficult,  too  slow  and  for  many  vessels  altogether  im- 
possible. However,  recently  large  sums  of  money  have 
been  spent  by  some  river  ports  for  improving  their  chan- 
nels; this  has  led  to  their  renewed  shipping  activity,  and 
there  are  no  harbors  whose  trade  has  increased  so  rapidly 
during  recent  years  as  the  trade  of  some  of  these  river 
ports.  Hamburg,  Bremen,  Antwerp,  Rotterdam,  Liver- 
pool, London,  Philadelphia,  New  Orleans,  Portland  have, 
by  perseverance,  well-applied  labor  and  the  expenditure 
of  millions  of  dollars,  placed  themselves  in  the  front  rank 
of  the  shipping  cities  of  the  world,  notwithstanding  their 
situation  on  capricious,  irregular  rivers,  with  shifting 
sands  and  other  dangers  to  navigation. 

There  is  only  one  part  of  the  ocean  traffic  which  the 
river  port  cannot  command;  this  is  the  transportation  of 
passengers  and  the  shipment  of  mail  and  express  mat- 
ter. Modem  Atlantic  “ greyhounds”  are  built  to  break 
speed  records,  to  act  as  advertisements  to  companies  pos- 
sessing them;  they  are  too  costly  to  lose  time  in  slowly 
ascending  and  descending  rivers.  To  meet  the  require- 


60 


SIMON  LITMAN 


ments  of  these  steamers,  harbors  were  built  on  sites  as 
near  as  possible  to  the  open  sea;  in  most  instances  these 
newly  created  ports  are  outports  (annexes)  of  the  main 
harbors  located  more  inland — for  example,  Queenstown 
an  annex  of  Liverpool,  Luxhaven  of  Hamburg,  Bremer- 
haven  of  Bremen,  etc. 

The  river  port  (Hamburg,  Liverpool,  etc.),  the  bay 
harbor  (Seattle,  Tacoma,  San  Francisco,  Boston,  Rio  de 
Janeiro,  Sydney,  Southampton),  and  the  combination  of 
the  river  and  bay  port  (New  York)  possess  the  advantages 
of  being  protected  by  nature  from  sea  storms.  Open  road- 
stead harbors  lack  this  protection;  they  are  located  on  the 
ocean  shore,  facing  the  open  sea;  most  of  these  harbors 
are  to  be  found  in  Central  and  South  America,  in  Africa 
and  in  southern  Asia,  where  the  climate  is  very  even.  If 
climatic  conditions  are  unfavorable  such  harbors  require 
artificial  breakwaters,  in  order  to  provide  quiet  anchor- 
age for  steamers.  Dover  in  England,  Boulogne  in  France, 
San  Pedro  in  the  United  States  are  examples  of  such  har- 
bors. In  the  case  of  open  roadsteads  freight  must  be  un- 
loaded into  barges,  lighters  and  other  craft,  as  the  steam- 
ers do  not  dare  approach  the  shore;  this  entails  loss  of 
time,  expense  of  extra  handling,  danger  of  injury  to  goods, 
etc. 

In  a modern  harbor,  facilities  for  receiving  and  for- 
warding freight  must  be  such  as  to  enable  an  expeditious 
handling  of  goods.  Every  hour  of  inactivity  in  harbor 
is  a serious  loss  to  capital  invested  in  the  ship;  therefore 
steamers  strive  to  incur  as  little  delay  as  possible  in  the 
operations  of  loading  and  discharging  freight.  To  hasten 
this  work  various  hoisting  apparatus  and  other  mechanical 
appliances  are  placed  at  the  service  of  the  ships. 

Harbor  accommodations  depend  largely  upon  local 
conditions.  As  most  of  our  leading  harbors  are  situated  on 
rivers,  their  facilities  are  influenced  by  river  tides.  If  the 
tides  are  moderate,  not  exceeding  10  to  12  feet,  quays  on 


TRADE  AND  COMMERCE 


61 


the  river  banks  and  tidal  basins  with  entrances  always 
open  may  be  used,  as  in  New  York,  Hamburg,  Calcutta; 
if  the  tides  are  great  (from  15  to  40  feet),  closed  docks 
are  essential;  such  docks  are  artificial  harbors  enclosed 
in  solid  masonry  and  with  water-tight  gates;  without  docks 
the  draught  at  low  water  is  insufficient  in  such  harbors 
to  float  even  small  craft.  London,  Liverpool,  Hull,  Havre, 
Antwerp,  Portland  had  to  construct  closed  docks  at  a con- 
siderable expense.  In  this  respect,  American  harbors  have, 
with  a few  exceptions,  better  natural  advantages  than 
those  of  Europe;  consequently,  they  do  not  require  the 
expenditure  of  such  vast  sums  of  money  as  have  been  and 
are  being  spent  on  the  seaports  of  Great  Britain,  France, 
Germany,  Belgium  and  Holland. 

VII.  CHARACTER,  IMPORTANCE  AND  CHIEF 
COURSES  OF  THE  LEADING  ARTICLES 
OF  INTERNATIONAL  TRADE. 

International  commerce  has  grown  since  the  beginning 
of  the  last  century  from  $1,400,000,000  in  1800,  to  approx- 
imately $28,000,000,000  in  1908,  an  increase  of  2,000  per 
cent.  This  total  includes  the  whole  world,  economically 
undeveloped  as  well  as  highly  civilized  countries,  and  as 
the  first  scarcely  participate  at  all  in  foreign  trade,  we  may 
realize  how  surprisingly  large  has  been  the  commercial 
growth  of  the  world’s  leading  nations. 

Commerce  has  grown  not  only  absolutely,  but  also  rela- 
tively; it  has  grown  much  more  rapidly  than  population, 
and  the  per  capita  share  in  international  trade  has  risen 
for  each  and  every  inhabitant  of  the  globe  from  $2.30  in 
1800  to  about  $17  in  1908,  or  more  than  sevenfold. 

Any  attempt  to  enumerate  the  commodities  which  en- 
ter into  this  vast  foreign  trade  would  lead  us  to  the  fill- 
ing of  pages  with  names,  many  of  these  strange  and  un- 
familiar scarcely  known  outside  of  the  physical  or  chemical 
laboratory,  or  the  machinist’s  shop;  other  names  repre- 


62 


SIMON  LITMAN 


senting  the  leading  staples  of  our  every-day  life,  the  bread- 
stuffs  and  foodstuffs  which  appear  on  the  table  of  the 
rich  and  the  poor  alike.  Innumerable  as  are  these  articles 
in  name  they  are  no  less  varied  in  character  and  useful- 
ness. A study  of  the  world’s  imports  and  exports  shows 
that  some  of  the  commodities  shipped  from  land  to  land 
are  dainty  and  beautiful,  embodying  the  artistic  skill  of 
the  maker;  others  are  coarse  and  unattractive,  their  rec- 
ommendation being  their  utility  and  their  price. 

Goods  are  not  barred  from  foreign  commerce  because 
of  weight,  bulk  or  perishability.  The  ore  of  the  iron  mine 
may  be  found  with  the  fruit  of  the  tropical  tree  and  the 
skin  of  the  polar  bear.  Modern  means  of  transportation 
have  not  only  made  shipments  possible  but  they  have  also 
led  to  the  standardization  of  the  needs  and  wants  of  the 
people.  An  article  produced  in  one  locality  may  find  a 
market  not  only  in  its  immediate  neighborhood  but 
throughout  the  civilized  world,  and  even  the  semi-civilized 
regions  are  being  rapidly  brought  under  the  leveling  in- 
fluences of  the  straw  hat,  the  calico  shirt  and  the  high- 
heeled  shoe. 

Imports  and  exports  of  different  countries  do  not  nec- 
essarily correspond  to  a country’s  excess  in  production 
over  the  needs  of  its  population.  It  may  be  generally  true 
that  exports  are  from  the  surplus,  but  the  term  surplus 
is  misleading,  unless  we  remember  that  a need  is  commer- 
cially considered  only  when  there  is  purchasing  power 
back  of  it.  Each  year  trading  nations  produce  ever-in- 
creasing quantities  of  goods  intended  solely  for  export. 
The  United  States  makes  shoes  to  be  sold  in  Paris,  in  Berlin 
or  in  Tokio,  while  thousands  of  its  own  people  are  in 
need  of  footwear.  Russia  ships  millions  of  bushels  of 
wheat  to  Germany  and  to  England,  while  her  peasants 
starve  because  of  a diet  of  herbs  and  roots, 


TRADE  AND  COMMERCE 


63 


Shipments  of  goods  are  sometimes  used  as  a means  for 
paying  international  debts,  and  such  shipments  may  take 
place  whether  or  not  there  is  a surplus  at  home. 

Of  importance  to  foreign  commerce  is  the  relative  po- 
sition of  the  places  of  production  and  consumption  within 
a country.  A foreign  market  may  be  more  contiguous  and 
of  much  easier  access  than  a domestic  one  to  the  produc- 
ing center  of  a country;  on  the  other  hand  a domestic  mar- 
ket may  be  much  nearer  to  a foreign  center  of  produc- 
tion; in  such  cases  there  are  exports  of  articles  abroad 
from  one  section  of  a country  and  imports  of  identical 
foreign  articles  into  another  section. 

In  connection  with  international  trade  the  time  ele- 
ment in  the  production  and  in  the  consumption  of  commod- 
ities must  also  be  considered.  Many  seasonable  goods 
are  produced  at  one  period  of  the  year  in  some  parts  of 
the  world  and  at  another  period  in  others;  this  is  partic- 
ularly true  when  comparing  the  northern  with  the  south- 
ern hemisphere  and  the  temperate  with  the  tropical  re- 
gions. When  winter  blasts  sweep  over  Europe,  Canada 
and  the  United  States,  the  warm  rays  of  summer  sun  shine 
upon  the  fields,  orchards  and  gardens  of  Australia,  New 
Zealand  and  the  West  Indies;  their  cereals  and  fruits 
mature,  are  harvested  and  sent  to  northern  markets. 

No  civilized  country  can  withdraw  from  international 
trade.  Self-sufficiency  is  no  longer  possible  even  for  such 
nations  as  the  United  States,  which  occupies  half  of  a 
continent  and  can  seemingly  produce  all  that  men  desire. 
We  have  tasted  of  fhe  fruit  of  foreign  lands,  we  have 
learned  to  know  and  to  like  things  produced  under  for- 
eign skies.  The  needs  and  desires  of  men  are  not  stopped 
by  an  artificial,  political  frontier;  high  tariff  duties  may 
temporarily  hinder  international  trade,  but  it  develops  in 
spite  of  these  duties  and  becomes  every  year  a more  im- 
portant factor  in  the  economic  life  of  each  nation. 


64 


SIMON  LITMAN 


Goods  shipped  from  land  to  land  are  either  finished 
commodities  which  appeal  directly  to  the  final  consumer 
or  raw  materials  of  commerce  and  semi-manufactured 
wares.  The  manufacturing  industries  of  a country  no 
longer  necessarily  depend  upon  the  domestic  supply  of 
raw  material  and  fuel.  Not  mileage,  but  cost  of  transpor- 
tation, is  the  commercial  measure  of  distance;  the  ocean, 
being  the  cheapest  highway,  brings  foreign  lands  close 
together,  placing  the  iron  ore  from  Spain  alongside  of  the 
blast  furnaces  of  Germany  and  feeding  the  cotton  from 
Georgia  or  Texas  to  the  spindles  of  England  and  France . 

There  are  different  ways  of  classifying  the  wares  of 
commerce:  one  way  is  to  divide  them  into  raw  materials, 
semi-manufactured  goods  and  finished  commodities.  The 
first  two  form  the  objects  of  trade  between  producers, 
wholesale  dealers  and  manufacturers,  and  from  the  point 
of  view  of  both  quantity  and  value  they  are  very  impor- 
tant articles  of  foreign  commerce.  Such  commodities  are 
being  exchanged  in  amounts  which  a few  decades  ago 
would  have  been  totally  impossible,  and  both  the  world’s 
industry  and  its  commerce  depend  to  a very  large  extent 
upon  their  shipments.  The  technique  in  handling  them 
is  different  from  that  attendant  upon  the  handling  and 
disposal  of  finished  goods . 

Another  classification  is  a classification  into  products 
of  the  vegetable,  the  animal  and  the  mineral  kingdoms. 
However  great  may  be  the  theoretical  value  of  such  a sub- 
division it  is  of  comparatively  little  benefit  to  the  practical 
business  man,  unless  it  is  used  as  a basis  for  many  sub- 
classifications, often  necessitating  the  overlapping  of  one 
kingdom  into  another.  Textiles,  for  instance,  are  made 
from  vegetable  fibers,  such  as  cotton,  jute  and  hemp,  as 
well  as  from  the  wool  of  sheep  and  the  thread  of  silk 
worms.  Textiles  compete  more  or  less  with  each  other, 
woolens  with  cottons  and  cottons  with  silks,  and  there  is 
every  reason  from  a business  point  of  view  to  consider 


TRADE  AND  COMMERCE 


65 


the  silkworm  and  the  cotton  plant  together,  notwithstand- 
ing the  fact  that  the  silkworm  belongs  to  the  same  king- 
dom as  the  horse  and  the  ox. 

A few  other  classifications  have  been  attempted,  the 
most  interesting  and  valuable  of  which  is  the  classifica- 
tion into:  groceries,  (colonial  goods  and  others),  agricul- 
tural products,  mineral  products,  textiles,  manufactures 
(other  than  textiles). 

In  determining  what  are  the  leading  commodities  of 
international  trade,  we  must  consider  not  only  the  quan- 
tity and  the  cash  value  of  goods  imported  and  exported, 
but  also  the  economic  importance  of  each  article.  Some 
goods  from  the  point  of  view  of  tonnage  and  of  dollars 
may  seem  insignificant,  yet  they  may  supply  an  impera- 
tive material  need  and  therefore  they  must  be  considered 
side  by  side  with  wares  that  give  commercial  statistics 
their  imposing  array  of  figures.  Before  the  beginning  of 
the  last  century  the  wares  of  commerce  were  either  colo- 
nial goods  or  textile  fabrics;  both  of  these  were  used  chiefly 
by  the  wealthy;  they  were  highly  priced  articles  (only 
such  could  stand  the  cost  of  transportation),  and  they 
were  entirely  unaccessible  to  the  great  bulk  of  the  popula- 
tion. 

Existing  commerce  is  international  in  the  fullest  mean- 
ing of  this  word;  it  supplies  not  only  the  whims  of  a few 
wTith  costty  wares  from  distant  lands,  but  masses  of  peo- 
ple with  necessities  and  comforts,  transporting  and  ex- 
changing wrheat,  corn  and  cotton  fabrics,  kerosene  and 
lumber,  as  well  as  pearls,  ivory  and  silks. 

In  the  following  pages  are  considered  some  of  the  prin- 
ciple articles  of  foreign  commerce. 

Groceries. 

Wheat  is  perhaps  the  most  important  of  all  the  articles 
moved  in  international  trade.  Because  of  its  palatability 
and  its  great  nutritive  value,  wheat  is  the  chief  grain  used 


66  SIMON  LITMAN 

for  bread  making  in  western  Europe  and  in  North  Amer- 
ica. 

Wheat  thrives  in  temperate  climates,  growing  in  almost 
every  region  of  the  north  and  south  temperate  zones,  its 
northern  limit  being  somewhat  lower  than  that  of  rye,  bar- 
ley or  oats  and  higher  than  that  of  corn;  its  cultivation 
is  carried  on  to  some  extent  within  the  tropics,  in  places 
where  climate  is  cool  in  winter.  Wheat  needs  coolness 
and  moisture  when  it  begins  to  grow  and  warm,  dry  weath- 
er when  it  matures. 

Europe  is  the  largest  wheat-growing  continent,  pro- 
ducing close  to  2,000,000,000  bushels  a year,  or  more  than 
half  the  total  output  of  the  world;  but  Europe  never  pro- 
duces enough  to  supply  her  needs  in  this  cereal.  Russia, 
Austria-Hungary  and  Roumania  export  comparatively 
large  quantities  to  other  European  countries,  but  these 
exports  are  not  sufficient  to  cover  the  demand  and  the 
main  vast  tide  of  wheat,  flowing  each  year  with  an  almost 
clock-like  regularity,  goes  from  the  thinly  settled  grain 
fields  of  the  United  States,  Canada  and  Argentina  to  the 
empty  storehouses  of  western  Europe.  No  commercial 
travelers  are  used  to  push  the  wares,  no  advertising  cam- 
paigns are  conducted,  as  the  buyers  seek  the  sellers;  small- 
er tides  of  wheat  go  from  India  to  Great  Britain  and  from 
the  Pacific  Northwest  and  California  to  China  and  Japan, 
whose  people  have  been  living  for  thousands  of  years  on 
rice  but  who  are  gradually  being  converted  into  wheat 
eaters.  The  production  of  wheat  is  not  and  because  of 
natural  conditions  cannot  be  a rapidly  expanding  indus- 
try; therefore  the  ultimate  benefit  that  would  accrue  to 
the  white  man  from  converting  the  hundreds  of  millions 
of  the  yellow  race  to  wheat  eating,  is  very  doubtful.  The 
United  States  is  the  leading  producer  of  wheat,  followed 
closely  by  Russia,  the  two  countries  yielding  annually 
from  1,200,000,000  to  1,400,000,000  bushels  (the  amount 
fluctuates  considerably  from  year  to  year). 


TRADE  AND  COMMERCE 


67 


Next  in  importance  as  a wheat  producer  is  France, 
whose  output  considering  the  size  of  the  country  is  re- 
markably large  and  suggestive  of  future  possibilities  for 
other  countries.  France  produced  in  1908 — 310,000,000 
bushels  to  Russia’s  569,000,000  and  Germany’s  138,000,- 
000.  Argentina  with  its  output  of  close  to  200,000,000  bu- 
shels for  a population  of  6,400,000  is  a very  valuable  fac- 
tor in  the  world’s  wheat  trade.  British  India  produces 
somewhat  more  than  Argentina,  but  her  exports,  because 
of  home  consumption,  are  much  smaller. 

The  United  Kingdom  is  the  largest  importer  of  wheat, 
a yearly  production  of  approximately  55,000,000  bushels  be- 
ing barely  enough  to  cover  the  needs  of  the  population 
for  about  three  months  in  the  year;  for  the  rest  of  the 
time  Great  Britain  lives  on  foreign  wheat.  Wheat  is 
imported  into  the  Kingdom  all  the  year  round,  the  date 
of  the  arrival  depending  upon  the  time  necessary  for 
transport  and  upon  the  date  of  the  harvest,  which  varies 
in  different  parts  of  the  world,  Australia  and  Argentina 
harvesting  wheat  in  January,  India  in  February  and 
March,  Mexico  in  April,  the  United  States  and  southern 
Russia  in  July,  etc. 

Wheat  is  classified  as  “hard”  or  “soft,”  soft  wheat 
containing  a large  percentage  of  starch  and  used  for  mak- 
ing flour,  hard  varieties  having  more  gluten  or  protein 
and  suitable  for  making  such  foods  as  macaroni.  Accord- 
ing to  the  season  of  sowing,  wheat  is  classified  into  “win- 
ter” or  “spring,”  the  latter  being  a more  northern  variety. 
Winter  wheat  is  sown  in  autumn  and  harvested  in  early 
summer,  spring  wheat  is  sown  in  the  spring  and  harvest- 
ed in  late  summer.  Wheat  manifests  local  preferences, 
so  that  a variety  which  may  grow  advantageously  in  the 
Dakotas  may  fail  in  India  and  vice  versa. 

Rice  is,  next  to  wheat,  economically  the  most  impor- 
tant cereal,  as  it  is  the  principal  food  of  at  least  a third  of 
humanity,  a larger  proportion  of  the  world’s  population 


68 


SIMON  LITMAN 


living  on  rice  than  on  wheat.  Rice  does  not  figure  promi- 
nently in  international  commerce;  this  is  due  to  two  facts 2 
first,  rice  is  not  the  staple  of  the  commercial  nations,  sec- 
ond, it  is  mostly  consumed  at  the  places  of  production. 

Eice  is  almost  universally  cultivated  in  Asia,  the  only 
exception  being  the  northern  portion  of  the  continent.  The 
Chinese  Empire,  British  India  and  Japan  are  the  lead- 
ing rice-producing  countries.  China  and  Japan,  notwith- 
standing their  large  production,  barely  meet  their  home 
demand;  British  India  exports  considerable  quantities, 
more  than  half  of  the  rice  in  the  world’s  commerce  com- 
ing from  there.  Japan  exports  some  of  the  better  grades, 
importing  an  inferior  article  from  India  and  China.  In 
Africa  rice  is  grown  principally  in  Egypt,  but  some  is  cul- 
tivated also  along  the  eastern  and  western  coasts  of  the 
continent,  as  wTell  as  in  Madagascar.  Rice  is  raised  in  some 
parts  of  Europe,  particularly  in  Italy.  The  United  States 
produces  about  half  of  the  rice  it  consumes,  the  other  half 
being  imported  from  eastern  Asia. 

Rice  needs  a great  deal  of  moisture  and  a very  warm 
climate;  it  thrives  best  in  tropical  and  sub-tropical  re- 
gions, in  places  of  abundant  rain  fall  or  where  there  are 
facilities  for  artificial  inundation.  Rice  is  richer  in  starch 
than  any  other  cereal  and  it  is  very  nutritious. 

Corn  cultivation  is  carried  on  in  many  countries,  but 
only  in  a few  is  it  an  industry  of  great  importance.  In 
the  United  States,  corn  is  the  largest  single  crop,  amount- 
ing at  present  to  about  2,600,000,000  bushels  a year,  which 
is  more  than  3-4  of  the  total  corn  production  of  the  world; 
other  countries  producing  corn  more  or  less  extensively 
are  Mexico,  the  Central  American  Republics,  Austria- 
Hungary,  Italy,  Spain,  southern  France  and  Egypt. 

In  Europe  corn  is  known  under  the  name  of  maize, 
the  word  corn  being  used  to  denominate  any  kind  of 
grain;  i e.,  wheat,  oats,  barley,  etc. 


TRADE  AND  COMMERCE 


69 


Considering  the  enormous  amount  of  corn  produced, 
comparatively  little  of  it  is  being  exported  from  the  Unit- 
ed States.  Corn  does  not  enter  prominently  into  foreign 
commerce,  the  reason  for  this  being  its  low  price  in  pro- 
portion to  its  weight  and  bulk,  which  makes  its  transpor- 
tation over  long  distances  too  expensive.  However,  the 
indirect  consumption  of  corn  abroad  in  the  form  of  meats 
is  very  great;  it  forms  an  element  of  the  slaughtering  busi- 
ness, being  used  as  a fodder  for  cattle,  as  it  contains  a 
larger  percentage  of  fats  than  other  cereals.  This  is  its 
only  use  in  Europe.  Canned  corn  may  be  found  in  large 
cities  frequented  by  American  tourists,  but  it  is  very  ex- 
pensive and  its  sales  are  limited.  The  United  States 
raises  large  quantities  of  an  edible  variety,  known  as 
sweet  or  sugar  corn.  Mexico,  Central  America  and  Egypt 
also  raise  considerable  quantities  of  this  variety. 

Corn  is  a warm  weather  plant,  being  easily  damaged 
by  frosts. 

Rye  is  cultivated  extensively  on  the  mainland  of  Eu- 
rope and  next  to  wheat  is  the  principal  food  of  the  people 
in  many  parts  of  the  continent.  The  rye  crop  of  the  world 
approximates  1,500,000,000  bushels  a year,  the  greatest 
amount  of  this  (about  85  per  cent)  being  produced  in  Rus- 
sia, Germany  and  Austria-Hungary.  Russia’s  yield  is 
more  than  half  of  the  world’s  output. 

Rye  can  be  grown  on  poorer  soil  and  in  colder  climates 
than  wheat  and  it  requires  little  care. 

Rye  does  not  figure  prominently  in  foreign  commerce. 
Russia  is  the  only  country  exporting  considerable  quanti- 
ties of  it  to  Germany  and  to  Holland;  some  rye  is  also 
shipped  from  Hungary  and  Roumania. 

Barley  can  be  cultivated  both  in  colder  and  in  warm- 
er latitudes  than  any  other  staple  cereal.  Most  of  the 
barley  is  grown  in  Europe,  where  it  can  be  grown  from 
the  northern  parts  of  Scandinavia  to  the  southern  ex- 
tremities of  Italy;  in  very  warm  regions  it  thrives  on 


70  SIMON  LITMAN 

mountain  sides,  climbing  the  slopes  higher  than  other 
cereals. 

The  total  barley  crop  of  the  world  exceeds  1,000,000,- 
000  bushels;  Russia,  Germany,  the  United  States,  Austria- 
Hungary  and  Great  Britain  are  its  largest  producers. 
Russia,  the  United  States,  Roumania,  Turkey  and  Algeria, 
are  exporters  while  the  United  Kingdom  and  Germany 
are  the  largest  importers. 

Ground  or  “ pearl”  barley  is  edible  and  is  being  used 
for  culinary  purposes;  barley  bread  is  used  in  Scotland 
and  in  Scandinavia.  Barley  however  is  cultivated  mostly 
for  the  making  of  malt,  used  in  the  production  of  beer. 
Barley  is  also  used  to  some  extent  as  horse  feed. 

Oats  is  a hardy  plant  capable  of  thriving  in  a cooler 
and  moister  climate  than  wheat.  It  is  grown  particularly 
in  the  northern  parts  of  Europe,  largely  near  the  Baltic 
coasts  of  Germany  and  Russia.  Oats  is  used  mostly  as 
horse  feed,  although  ever-increasing  quantities  of  it  are 
being  consumed  by  people  in  the  form  of  breakfast  foods. 

Hops  are  the  dried  fruits  of  a vine  and  they  are  used 
as  a seasoning  for  beer,  giving  to  the  latter  a bitter  flavor. 
They  are  cultivated  in  beer-producing  countries,  in  Eng- 
land, Germany,  Austria  and  the  United  States.  The  value 
of  the  latter  country’s  imports  and  exports  are  about 
equal.  England  is  one  of  the  largest  importers  of  hops, 
most  of  our  shipments  going  to  that  country. 

The  potato  is  one  of  the  most  universally  grown  edible 
roots.  Large  areas  are  devoted  to  its  cultivation  in  va- 
rious parts  of  the  world,  in  the  majority  of  cases  with  very 
satisfactory  results;  enormous  quantities  of  the  tubers  are 
raised  in  Europe  and  in  the  United  States. 

Potatoes  do  not  play  an  important  role  in  international 
trade;  like  tomatoes,  turnips,  parsnips,  carrots,  cucum- 
bers, asparagus  and  other  vegetables,  they  are  mainly  con- 
sumed near  their  places  of  production;  their  small  exchange 


TRADE  AND  COMMERCE  71 

value  in  proportion  to  their  bulk  forbidding  distant  trans- 
port. 

In  North  Germany  and  in  Ireland  the  potato  forms  the 
largest  part  of  the  diet  of  the  working  classes.  Germany’s 
yield  of  potatoes  in  1908  was  45,538,000  tons,  thirteen  times 
as  large  as  her  yield  of  wheat  or  barley.  The  next  largest 
producers  and  consumers  of  potatoes  after  Germany  are 
Russia,  Austria-Hungary  and  France.  There  are  two 
varieties  of  potato;  the  Irish  or  white  potato  and  the  yam 
or  sweet  potato.  Besides  being  used  as  articles  of  food, 
potatoes  yield  alcohol  as  well  as  the  greater  part  of  the 
starch  for  commercial  and  technical  purposes.  The  Unit- 
ed States  is  both  an  importer  and  exporter  of  potatoes; 
our  imports  in  1909  (an  exceptional  year)  reached  8,385,- 
000  bushels. 

Pulses  or  leguminous  vegetables  are  extremely  nutri- 
tious and  therefore  hold  an  important  place  as  foodstuffs. 
They  are  consumed  in  considerable  quantities  in  all  parts 
of  the  earth,  the  leading  commercial  varieties  being  com- 
mon peas,  beans,  chick  peas,  and  soy  beans. 

Peas  are  cultivated  in  Great  Britain,  in  north  central 
Europe,  in  Canada  and  in  the  northern  parts  of  the  Unit- 
ed States;  beans  require  somewhat  lower  latitudes. 

By  cultivation  the  bean  has  been  made  to  vary  in  size, 
taste,  color  and  composition;  the  varieties  are  sold  under 
different  names,  such  as  kidney  beans,  marrowfat  beans, 
haricot  beans,  etc.,  but  they  are  all  derived  from  the  same 
ancestral  stock.  The  lima  bean  and  the  soy  bean  belong 
to  a different  species. 

The  United  States  imports  and  exports  both  beans  and 
pease;  the  exports  are  insignificant;  the  imports  in  1909 
reached  the  value  of  about  $5,000,000,  forming  the  largest 
item  in  the  list  of  imported  vegetables. 

Pulses  enter  foreign  commerce  mostly  dried. 

Fruits  for  table  use  have  risen  recently  to  a promi- 
nent position  in  foreign  trade.  The  use  of  specially  con- 


72 


SIMON  LITMAN 


structed  ears  and  steamers  with  provisions  for  ventilation 
and  cold  storage,  the  rapidity  with  which  distances  are 
overcome  permit  shipments  of  such  delicate  foods  as  fresh 
grapes,  peaches,  cherries  and  apricots.  Grapes  are  ex- 
ported from  southern  Africa  and  Australia  to  northern 
Europe,  bananas  from  the  British  West  Indies,  Central 
America  and  Cuba  to  the  United  States  and  Great  Britain. 
The  value  of  our  imports  of  bananas  alone  exceeds  $11,- 
000,000  a year;  in  1909  the  total  value  of  our  entire  im- 
ports of  fruits  and  nuts  was  $31,110,000;  these  imports, 
in  addition  to  bananas,  included  lemons,  currants,  grapes, 
olives,  dates,  figs,  raisins,  oranges,  walnuts,  almonds,  cocoa- 
nuts,  etc.  The  United  States  exports  to  the  United  King- 
dom, Canada,  Germany  and  other  countries,  apples,  apri- 
cots, oranges,  peaches,  pears,  prunes  and  raisins;  in  1909 
the  value  of  exports  exceeded  $16,500,000,  a large  part  of 
which  consisted  of  green  or  ripe  fruit. 

Canned  Goods.  Many  fruits  and  vegetables,  as  well  as 
meats  and  fish  are  pickled,  dried  or  canned  for  trade;  this 
last  process  has  been  rapidly  gaining  in  popular  favor, 
especially  in  the  United  States.  The  advantage  of  canned 
goods  is  their  safety  against  decay.  At  present  almost 
everything  edible  is  canned,  from  fresh  buns  and  bread  to 
frog’s  legs  and  bird’s  nests.  Special  orchards,  gardens, 
and  farms,  both  in  the  United  States  and  other  countries, 
are  devoted  to  the  raising  of  vegetables  and  fruits  for  can- 
neries. An  idea  of  the  magnitude  of  the  industry  may  be 
gained  from  the  fact  that  in  1908  the  United  States  used 
more  than  1,200,000,000  cans;  besides  greens  it  consumes 
a part  of  the  catch  of  our  fishermen  and  some  of  the  prod- 
uct of  the  meat  packer.  Tinned  goods  are  of  special  value 
to  the  white  man  in  arctic  and  in  tropical  regions;  he 
fails  to  find  there  those  foods  which  experience  of  centu- 
ries makes  him  consider  essential  to  his  well  being;  he  can 
get  these  foods  only  by  resorting  to  the  products  of  the 
cannery.  An  important  item  in  the  handling  of  canned 


TRADE  AND  COMMERCE 


73 


goods  is  that  the  contents  of  the  cans  must  he  fresh  and 
wholesome.  A new  and  attractive  label  is  not  sufficient, 
and  it  is  easier  to  gain  a bad  reputation  than  a good  one. 
Stale  goods  are  no  longer  saleable  even  in  remote  regions. 

Sugar  is  one  of  the  most  important  vegetable  commodi- 
ties. It  is  mainly  obtained  from  either  sugar  cane  or  sugar 
beets;  the  first  is  a perennial  plant  grown  easily  and  abun- 
dantly in  the  tropics  and  sub-tropics,  the  second  is  a prod- 
uct of  careful  cultivation  in  temperate  regions.  In  1908 
the  amount  of  cane  sugar  produced  was  7,218,000  tons,  of 
beet  sugar  6,980,000  tons;  these  figures  indicate  a change 
in  the  relative  position  of  the  two  varieties.  Since  the 
introduction  of  beet  sugar  on  the  continent  of  Europe  less 
than  seventy  years  ago,  the  industry  has  been  growing  at 
a rapid  pace,  finding  a good  market  for  its  products  in 
the  densely  populated  areas  at  home  as  well  as  in  Great 
Britain  and  the  United  States;  in  these  two  latter  coun- 
tries the  large  consumption  is  so  disproportionate  to  the 
home  production  that  they  are  a coveted  prize  for  export- 
ing nations.  Ever  since  the  eighties  of  the  last  century, 
there  was  no  year  when  the  tonnage  of  beet  sugar  has  not 
exceeded  that  of  cane  sugar.  It  has  been  a typical  illustra- 
tion of  an  economic  struggle  between  the  man  of  the  trop- 
ics and  the  man  of  the  temperate  regions.  On  one  side 
there  was  fertile  soil  and  favorable  climate,  but  the  man, 
indolent,  unaccustomed  to  long  sustained  work,  unable  to 
submit  to  discipline  and  ignorant  of  system;  on  the  other 
sandy  plains  and  gray  skies,  but  the  man  persevering,  un- 
ceasingly planning  and  toiling,  co-ordinating  his  actions  to 
those  of  others.  The  result  was  inevitable.  However,  mod- 
ern methods  and  machinery  are  being  introduced  in  the 
cane  fields  of  Cuba,  Hawaii,  Java  and  Brazil;  people  of 
ability  and  knowledge  are  being  drawn  to  these  regions, 
and  the  sugar  cane  may  soon  show  its  strength  as  the  com- 
petitor of  the  beet. 


74 


SIMON  LITMAN 


England  is  the  largest  per  capita  consumer  of  sugar, 
approximating  94  pounds  a year;  a part  of  this  sugar  is 
consumed  in  the  making  of  jams,  jellies,  etc.,  which  are 
exported.  The  per  capita  consumption  in  the  United  States 
is  77 J lbs.,  in  Denmark  74  lbs.,  in  Germany  41  lbs.,  in 
France  36  lbs.,  in  Russia  21  lbs.,  in  Italy  8 lbs. 

Beverages. 

Tea. — The  average  annual  export  of  tea  from  tea- 
producing  countries  is  1,100,000,000  pounds,  valued  at 
$100,000,000. 

China  exports  the  largest  quantity  of  tea,  but  India 
exceeds  it  in  the  value  of  the  product  exported.  This  is 
largely  because  many  inferior  grades  are  shipped  from  the 
first-named  country.  Ceylon  is  third  in  the  list  of  export- 
ers, followed  at  quite  a long  distance  by  Japan,  Java  and 
Formosa. 

The  greatest  tea  importer  in  the  world  is  the  United 
Kingdom,  her  imports  averaging  260,000,000  pounds  a 
year;  Russia  follows  with  an  average  import  of  126,000,000 
pounds.  In  1909  the  United  States  imported  close  to  115,- 
000,000  pounds,  about  half  of  which  quantity  came  from 
Japan.  Tea  is  consumed  in  more  or  less  large  amounts  in 
Canada,  Australia,  as  well  as  all  over  Europe. 

Within  recent  years  teas  from  India  and  Ceylon  have 
been  displacing  the  Chinese  varieties  in  the  world’s  mar- 
kets, but  just  as  the  producers  of  the  sugar  cane  are  mak- 
ing strenuous  efforts  to  recover  some  of  the  ground  lost, 
so  also  are  the  Chinese  tea  manufacturers  and  merchants 
striving  to  improve  their  position  by  introducing  modern 
methods  of  cultivation  and  manufacture. 

Teas  are  classed  commercially,  according  to  their  color, 
into  green  and  black,  the  difference  being  due  to  the  meth- 
ods of  curing  the  leaves.  Green  teas  are  made  by  drying 
the  leaves  rapidly,  with  little  exposure  to  the  air;  black 
teas  are  dried  slowly  and  mainly  in  the  sun.  According 


TRADE  AND  COMMERCE 


75 


to  the  method  of  preparation,  teas  are  classed  as  Basket- 
fired,  Pan-fired,  Imperial,  Gunpowder,  etc.;  according  to 
quality,  dependent  on  the  age  of  the  leaf  when  it  is  picked, 
as  ‘ ‘ Pekoe”  (the  youngest),  “ Oolong,”  “Fouchong,”  etc. 
The  buyers  consider  also  the  district  where  the  tea  is  pro- 
duced: Japan,  India,  Formosa. 

Tea  is  a very  hardy  sub-tropical  plant  and  is  suited 
for  a wide  range  of  climate;  it  thrives  best  in  warm,  moist 
places  with  equable  temperature  throughout  the  year.  As 
the  preparation  of  tea  for  the  market  requires  a great  deal 
of  manipulation  by  hand,  its  growth  is  profitable  only  in 
those  places  where  there  is  an  abundant  supply  of  cheap 
labor. 

Australia  is  the  largest  per  capita  consumer  of  tea  (7.1 
pounds);  the  consumption  in  England  is  6 pounds,  in  the 
United  States  1.3  pounds,  in  Russia  1.25  pounds,  in  Ger- 
many 0.13  pounds. 

Yerba  Mate  is  a Paraguay  tea  used  extensively  in 
South  American  republics;  it  grows  in  Paraguay  and  in 
Brazil,  the  exports  of  these  two  countries  reaching  into 
many  millions  of  pounds. 

Coffee  is  cultivated  principally  in  Brazil,  which  pro- 
duces about  three-fourths  of  the  world’s  total  supply;  other 
coffee-growing  countries  are  Venezuela,  Colombia,  the 
Central  American  republics,  Java,  Mexico,  and  the  West 
Indies.  Brazil,  with  a total  production  of  about  18,000,000 
bags  (of  120  pounds  each),  controls  the  world’s  markets. 

Coffee  is  classified  according  to  the  places  of  production 
or  shipment,  as  Rio,  Santos,  Guatemala,  Mocha,  and  J ava. 
The  name  Mocha  is  given  to  coffee  produced  in  Arabia,  and 
Java  to  that  raised  on  the  islands  of  Java,  Sumatra,  Borneo 
and  Celebes.  However,  a great  deal  of  what  is  now  sold 
as  Mocha  and  Java  is  grown  in  other  countries,  its  flavor 
being  the  only  claim  to  the  name. 

The  stimulating  effect  of  coffee  is  due  to  the  presence 
of  an  alkaloid — caffeine.  Theine,  the  alkaloid  of  tea,  is 


76 


SIMON  LITMAN 


practically  identical  with  caffeine.  The  quantity  contained 
is  small  (0.6  to  1.8  per  cent),  varying  with  the  species  of 
coffee. 

The  United  States  is  the  chief  consumer  of  coffee,  im- 
porting annually  about  1,000,000,000  lbs.,  or  more  than  one- 
third  of  the  world’s  commercial  crop.  Next  in  importance 
as  coffee  consumers  are  Germany,  France,  Austria-Hun- 
gary, Holland,  Belgium  and  Great  Britain.  The  greatest 
per  capita  consumers  of  coffee  are  the  Netherlands,  the 
United  States  and  Belgium. 

Cacao— the  product  of  a tropical  tree  (not  to  he  con- 
fused with  the  cocoanut  tree),  is  used  either  as  a bev- 
erage or  for  the  making  of  chocolate.  It  contains  fat, 
nitrogenous  matter  and  starch,  and  has  therefore  great 
nutritive  value.  The  chief  producers  of  raw  cacao  are 
Ecuador,  Brazil,  Trinidad,  Venezuela  and  the  island  of  San 
Thome  (in  Africa);  less  important  are  Cuba,  Porto  Rico, 
Haiti,  Jamaica,  other  West  India  Islands,  and  the  Gold 
Coast  of  Africa  and  Ceylon.  The  total  world’s  crop  ex- 
ceeds 150,000  tons.  Cacao  may  be  found  in  the  import 
list  of  every  commercial  nation,  and  it  seems  to  be  gaining 
in  favor  as  a beverage.  This  is  particularly  true  of  the 
United  States,  whose  imports  of  cacao  rose  from  63,000,000 
lbs.  in  1903  to  129,854,000  lbs.  in  1909,  or  more  than  doubled 
themselves.  Spain  and  Portugal  are  the  largest  per  capita 
consumers  of  cacao. 

Alcoholic  Liquors. 

Wine. — The  grape  vine  needs  a moderately  high 
temperature  during  summer  and  far  into  the  autumn; 
otherwise,  it  does  not  mature  so  as  to  make  it  fit  for  wine 
making.  The  limits  of  cultivation  are  fixed  not  only  cli- 
matically, but  also  commercially;  many  regions  have  given 
up  wine  making  because  of  the  inferior  quality  of  the  wine 
produced;  this  has  taken  place  in  southern  counties  of  Eng- 
land and  in  the  provinces  of  eastern  and  western  Prussia; 


TRADE  AND  COMMERCE 


77 


their  wine  industry  succumbed  to  the  competition  of  better 
grade  wines,  produced  in  other  localities. 

The  finest  and  largest  vineyards  are  those  of  France, 
Italy  and  Spain,  these  three  countries  producing  about 
1,800,000,000  gallons  a year,  or  85  per  cent  of  the  total  out- 
put of  the  world.  Austria-Hungary,  Portugal,  Germany, 
Russia,  Bulgaria  and  Roumania  are  the  next  largest  pro- 
ducers, in  the  order  named.  The  output  in  the  United 
States  is  comparatively  small  and  confined  to  the  states 
of  California  and  New  York.  In  1909  our  imports  of  spark- 
ling (champagne,  etc.)  and  still  wines  exceeded  $12,000,- 
000. 

Each  district  raises  wine  peculiar  'to  it,  peculiar  in 
its  flavor  and  other  characteristics;  there  are  as  many  vari- 
eties of  wine  as  there  are  localities  raising  the  grape. 

Grapes  are  cultivated  also  as  a dessert  fruit  and  for  the 
making  of  raisins ; the  latter  industry  is  confined  to  Malaga 
and  Yalentia  in  Spain,  to  certain  districts  in  Asia  Minor, 
to  Greece  and  to  California. 

Beer  is  made  mainly  from  malted  barley,  but  almost 
any  kind  of  cereal  may  be  used  for  the  purpose.  Hops  are 
added  to  impart  a slightly  bitter  flavor.  Two  countries 
rise  above  all  others  in  the  amount  of  beer  produced  and 
consumed;  these  countries  are  the  United  Kingdom  and 
Germany;  Belgium  excels  them  in  the  per  capita  consump- 
tion of  beer  (150  quarts  a year),  and  Denmark  nearly  ap- 
proaches them  (90  quarts).  The  more  prominent  of  the 
other  beer-consuming  countries  are  the  United  States,  the 
Australian  Commonwealth,  and  Switzerland.  The  United 
States  imports  about  7,000,000  gallons  of  malt  liquors,  ex- 
ports little. 

Animal  Products. 

Domestic  animals,  particularly  cattle,  take  an  important 
place  in  foreign  commerce;  but  the  shipments  of  live  cattle 
have  decreased  considerably  since  the  introduction  of  re- 


78 


SIMON  LITMAN 


frigerator  cars  and  cold  storage  steamers  made  possible 
transportations  of  fresh  dressed  beef.  Live  animals  are 
shipped  mostly  for  slaughtering  or  for  breeding  purposes. 
The  leading  cattle  raisers  are  the  United  States,  Russia, 
Argentina,  India  and  Australia.  Sheep  are  exported  par- 
ticularly from  Australia,  Argentina,  the  United  States, 
Canada  and  Russia,  these  five  countries  possessing  the 
largest  amount  of  sheep.  Horse  meat  is  consumed  to  some 
extent  in  France  and  in  Germany,  but  the  most  significant 
value  of  horses  lies  in  their  use  as  draft  animals  in  all  the 
temperate  regions  of  the  world.  The  United  States  is  next 
to  Russia  the  possessor  of  the  greatest  number  of  horses. 
Comparatively  few  live  hogs  are  transported  from  country 
to  country;  the  same  is  true  of  all  other  domesticated  ani- 
mals, like  goats,  mules,  asses,  etc. 

Meat  Products. — Wholesale  slaughtering  and  meat 
packing  for  export  are  important  industries  in  the  United 
States,  in  Argentina  and  in  Australia.  The  products  are 
shipped  to  all  parts  of  the  world,  but  the  leading  markets 
are  Great  Britain  and  the  manufacturing  states  in  the 
northwestern  section  of  Europe.  Meat  products  comprise 
fresh,  salted,  pickled  and  canned  beef,  bacon,  ham  and 
pork,  tallow,  lard,  oleo  oil,  sausage  and  sausage  casings. 
The  chief  exporters  of  mutton  are  Argentina  and  New 
Zealand. 

Dairy  Products. — Butter,  cheese  and  condensed  milk 
figure  prominently  in  foreign  trade.  The  United  States 
imports  close  to  $6,000,000  worth  of  cheese,  mainly  from 
Italy,  Switzerland,  Holland  and  France.  Canada,  one  of 
the  leading  cheese  producers,  exports  large  quantities  of 
cheese  to  Great  Britain.  Until  recently  trade  in  butter 
was  confined  to  shipments  between  adjacent  countries,  but 
since  the  introduction  of  cold  storage,  butter  can  be  sent 
long  distances  without  impairing  its  quality  and  flavor. 
In  Europe,  Denmark,  France  and  Holland  have  developed 


TRADE  AND  COMMERCE  79 

dairying  to  a high  degree,  and  they  export  much  butter, 
particularly  to  England. 

Poultry  and  eggs  figure  largely  in  foreign  commerce. 
Great  Britain  is  one  of  the  leading  markets,  and  "Russia 
one  of  the  main  sources  of  supply;  over  1,500,000,000  eggs 
are  annually  exported  from  the  latter  country;  these  are 
sold,  however,  mostly  on  the  continent  of  Europe  and  not 
in  England,  which  imports  better  grades  from  Denmark, 
northern  France,  Canada,  etc.  The  United  States’  exports 
of  poultry  and  eggs  approximate  $2,000,000  annually. 

Fisheries. 

If  under  the  head  of  fisheries  one  includes  the  commer- 
cial production  of  all  the  marine  animals  used  as  food,  such 
as  oysters,  lobsters,  etc.,  one  finds  that  the  most  valuable 
fish  catch  is  furnished  by  the  United  States  and  by  Great 
Britain,  other  fish-yielding  countries  being  Canada,  New- 
foundland, Russia,  France,  Norway,  etc. 

Most  of  the  fish  is  consumed  fresh,  in  the  districts  ad- 
jacent to  the  places  of  their  production,  near  the  seacoast 
or  close  to  rivers  and  lakes.  International  commerce  in 
fish,  although  large,  does  not  give  it  an  especially  prom- 
inent place  in  either  imports  or  exports  of  the  leading  com- 
mercial nations. 

Norway  and  Newfoundland  export  most  of  their  catch, 
the  largest  importers  being  Spain,  Portugal  and  Italy, 
where  the  consumption  of  fish  during  the  lenten  season 
is  very  great.  The  catch  of  Germany  is  insufficient  to  sup- 
ply her  home  demand  and  she  is  one  of  the  leading  fish- 
importing countries. 

Herring  is  one  of  the  world’s  most  widely  distributed 
and  most  valuable  fishes.  In  nearly  every  country  which 
has  extensive  fisheries  some  variety  of  herring  is  caught; 
on  the  eastern  and  western  coasts  of  North  America  it  is 
known  as  sea  herring,  the  shad,  the  river  herring,  and  the 
“American  sardine;”  on  the  shores  of  Europe  the  same 


80 


SIMON  LITMAN 


varieties  with  the  addition  of  the  pilchard  and  the  “ white 
bait”  are  caught.  Herrings  abound  also  in  the  waters  of 
Siberia,  Korea,  Japan,  the  Philippine  and  the  East  Indian 
Archipelago;  in  the  rivers  and  on  the  coasts  of  India,  in 
Australia  and  New  Zealand. 

The  “Grand  Banks”  of  the  coast  of  Newfoundland  fur- 
nish cod  and  haddock.  Codfish  are  mostly  dried  and  cured; 
so  prepared  they  find  a ready  market  in  Spain,  Italy, 
Erance,  Austria-Hungary,  in  Central  and  South  America 
and  in  the  West  Indies.  Countries  exporting  cod,  besides 
Newfoundland,  are  Canada,  the  United  States  and  Norway. 

Salmon  are  caught  mostly  on  the  Pacific  coast  of  North 
America,  from  Alaska  to  Oregon;  some  of  the  fish  are 
shipped  refrigerated  as  far  as  the  eastern  markets,  but  by 
far  the  largest  part  of  the  product  is  canned. 

Sardines,  not  young  herrings,  but  real  sardines,  are 
caught  on  the  Atlantic  coasts  of  France,  Spain  and  Portu- 
gal, also  in  some  parts  of  the  Mediterranean  Sea.  France 
exports  millions  of  cans  of  sardines  put  up  in  olive  oil. 

Other  varieties  of  fish  extensively  used  are  sole,  hali- 
but, mackerel,  shad,  trout,  bluefish,  whitefish  and  stur- 
geon; the  latter  fish  is  valuable,  not  so  much  because  of  its 
meat,  as  because  of  the  roe,  which  is  prepared  and  salted 
and  in  this  way  is  put  on  the  market  under  the  name  of 
caviare.  Caviare  is  made  in  Russia  (on  the  shores  of  the 
Caspian  and  Black  seas),  also,  in  some  parts  of  Germany 
and  in  the  United  States  (on  the  Great  Lakes,  on  Dela- 
ware Bay  and  in  Oregon). 

The  value  of  the  United  States’  imports  of  fish  (in  1909 
— $12,403,000)  is  double  of  its  exports;  most  of  the  fish 
comes  dried,  salted,  pickled,  smoked  or  canned;  more  than 
half  of  the  exports  is  canned  salmon. 

Oysters. 

About  35,000,000  bushels  of  oysters  are  produced  annu- 
ally, two-thirds  of  which  amount  is  credited  to  the  United 


TRADE  AND  COMMERCE 


81 


States,  where  oysters  represent  the  most  valuable  product 
of  the  fisheries.  In  the  United  States  the  oyster  is  an 
article  of  general  consumption,  while  in  Europe  it  is  a lux- 
ury. European  oysters  come  from  the  shores  of  the  Atlan- 
tic (England,  France  and  Spain),  and  the  North  Sea  (Hol- 
land and  Germany).  The  product  is  brought  to  the  market 
either  fresh  or  canned. 

American  oysters  are  considered  amongst  the  best  in 
the  world;  the  demand  for  them  is  very  large,  and  as  the 
natural  supply  is  insufficient  to  meet  it,  oyster  culture  is 
carried  on  extensively,  especially  in  the  states  of  New  York, 
New  Jersey,  Maryland  and  Virginia;  the  shell  fish  has  also 
been  transplanted  to  the  coasts  of  California  and  Oregon. 

i 

Spices  and  Condiments. 

Spices  and  condiments,  in  their  aggregate,  form  an  im- 
portant item  of  international  trade.  They  are  used  exten- 
sively for  the  purpose  of  making  articles  of  food  more  pala- 
table or  digestible.  Some  spices,  like  mustard  or  caraway 
seeds,  grow  in  most  parts  of  Europe,  America  and  Asia;  but 
the  majority  of  spices  are  products  of  tropical  and  sub- 
tropical regions  and  therefore  must  be  shipped  long  dis- 
tances to  the  places  of  consumption.  The  most  commonly 
known  varieties  are  pepper,  cloves,  nutmeg,  allspice,  ginger, 
cinnamon  and  vanilla.  In  1909  the  United  States’  imports 
of  spices  exceeded  78,000,000  pounds,  valued  at  $5,348,000. 

Narcotics. 

Tobacco,  first  discovered  in  America,  is  grown  in  nearly 
all  parts  of  the  world.  However,  for  a successful  cultiva- 
tion it  requires  warm  summers  and  a total  absence  of 
frosts,  when  it  begins  to  grow.  There  are  innumerable 
varieties  of  tobacco,  the  many  gradations  in  .quality  and 
flavor  being  due  to  differences  in  soil,  climate,  method  of 
cultivation;  further,  the  same  plant  produces  different 
classes  of  leaf,  some  suitable  for  pipe  tobacco,  others  for 

B — IV— r 6 


82 


SIMON  LITMAN 


the  manufacture  of  cigarettes,  etc.  The  stems  or  midribs 
are  used  for  snuffs,  for  making  sheep-dip  and  for  fumigat- 
ing purposes. 

Commercially  tobacco  is  classified  according  to  the 
place  of  production  or  of  export,  i.  e.,  Virginia,  Turkish, 
Havana;  according  to  the  use  for  which  it  is  intended,  as 
pipe,  cigar,  chewing  and  cigarette  classes,  each  class  being 
subdivided  into  types,  dependent  upon  color,  flavor, 
strength,  elasticity  of  the  leaf,  etc. 

The  United  States  leads  in  the  production  of  tobacco; 
it  exports  inferior  kinds  to  the  extent  of  about  300,000,000 
lbs.,  and  imports  better  grades  from  Cuba,  Sumatra,  Egypt. 
The  total  average  annual  production  of  tobacco  is  consid- 
erably over  a million  tons,  valued  at  $200,000,000,  the  pro- 
ducers being  the  United  States,  India,  Cuba,  Russia  and 
the  Dutch  colonies  in  the  East. 

The  largest  per  capita  consumers  of  tobacco  are  Hol- 
land and  Belgium,  with  an  average  annual  consumption  of 
6.2  lbs.;  the  United  States  has  an  average  of  5.4  lbs.;  Ger- 
many 3.4  lbs.;  the  United  Kingdom  1.9  lbs.;  Russia  1.1  lbs. 

Opium  is  used  extensively  as  a narcotic  in  China  and 
throughout  the  East  in  general.  Opium  is  the  dried  juice 
of  the  white  poppy  and  its  production  is  particularly  im- 
portant in  India,  China,  Persia  and  Asiatic  Turkey. 
Opium,  besides  being  a narcotic  has  medicinal  value  as  the 
source  of  morphine.  In  1909  the  United  States  imported 
about  $2,000,000  worth  of  crude  opium  for  medicinal  pur- 
poses and  close  to  $1,000,000  worth  of  the  drug  prepared 
for  smoking,  the  latter  mainly  for  the  use  of  the  Chinese 
residing  in  this  country. 

Fibers. 

The  cultivation  of  fiber-yielding  plants,  the  rearing  of 
fiber-producing  animals  and  the  manufacturing  of  the  ma- 
terial furnished  by  both  into  threads,  ropes  and  yarns, 


TRADE  AND  COMMERCE 


83 


dress  goods  and  underwear,  mattings  and  carpets  are 
amongst  the  world’s  most  important  industries. 

Vegetable  fibers  are  obtained  from  leaves  and  leaf 
stalks  (Manila  hemp),  from  the  bast  of  plants  (flax,  jute)', 
from  fruit  (cocoanut),  from  plant  hairs  (cotton),  from 
stems  (broom  corn,  rattan). 

Cotton  is  cultivated  throughout  the  tropical  and  warm 
temperate  regions  of  the  earth.  Over  three-fifths  of  the 
fiber  is  grown  in  the  United  States,  other  important  pro- 
ducers being  India  and  Egypt.  These  three  countries  sup- 
ply the  most  of  the  world’s  commercial  demand.  In  Europe 
small  areas  under  cotton  are  found  scattered  in  Spain, 
Italy,  Turkey  and  Greece.  In  Asia  some  cotton  is  grown 
in  China,  Japan,  Persia  and  Asia  Minor,  everywhere  al- 
most entirely  for  local  consumption.  Cotton  is  cultivated 
also  in  Central  America,  the  West  Indies,  Mexico,  Brazil, 
and  Peru,  as  well  as  in  many  parts  of  Africa.  On  the 
latter  continent  the  culture  of  cotton  is  being  encouraged 
by  the  governments  of  the  colonizing  nations,  i.  e.,  Ger- 
many, France  and  England. 

The  cotton  plant  yields  a soft  fiber  which  surrounds 
its  seeds,  and  from  which  yam  for  fabrics  and  ropes  is 
woven.  The  fiber  is  also  used  for  making  nitro-cellulose, 
the  commercial  products  of  which  are  explosive  celluloid 
and  artificial  silk  (mercerized  cotton).  Cotton  yarn  is  the 
chief  material  for  the  making  of  underwear  and  clothing. 
Cottonseed  oil  is  manufactured  for  table  and  kitchen  use, 
for  the  making  of  soaps,  candles,  etc.  The  oil  cake  is  a 
good  cattle  food  and  fertilizer. 

There  are  numerous  varieties  of  raw  cotton,  their  qual- 
ity depending  upon  the  length  of  the  fiber,  its  softness, 
strength,  regularity  and  color. 

Upland  or  American  cotton  grown  in  the  Atlantic  States 
is  the  most  generally  used  variety;  sea-island  cotton  raised 
along  the  coast  of  South  Carolina  and  Georgia  and  on  the 
adjacent  islands  is  the  most  expensive  of  all  cottons,  be- 


84 


SIMON  LITMAN 


cause  of  the  comparative  length  of  the  fibers,  their  soft- 
ness, etc.;  Egyptian  cotton  is  of  fine  quality  and  is  highly 
valued  in  European  markets;  some  Egyptian  cotton  is  im- 
ported into  the  United  States,  in  1909  about  68,000,000 
pounds. 

Indian  cotton  is  short  and  of  inferior  quality,  though 
lately  more  care  is  being  bestowed  upon  its  picking  and 
the  keeping  it  free  from  dirt  after  it  has  been  picked. 

The  cotton  exchanges  of  the  United  States  recognize 
thirteen  distinct  grades  of  cotton,  determined  by  the  de- 
gree of  color  and  the  amount  of  foreign  matter.  These 
grades  range  from  “ ordinary’9  and  “ strict  ordinary”  to 
“middling”  and  “fair.”  Discolored  cotton  is  designated 
by  the  word  “tinged”  or  “stained”  following  the  grade. 
Tinged  cotton  is  only  slightly  discolored;  stained  ranges 
from  a light  yellow  to  a deep  red. 

The  basic  grade  in  all  markets  is  middling,  white  cot- 
ton; by  this  grade  the  quality  of  all  others  is  measured; 
it  is  a fleecy  cotton  containing  only  a small  amount  of 
impurities.  Fair  cotton,  the  highest  grade  recognized  by 
the  markets,  is  very  bright,  white  and  clean.  The  classifica- 
tion of  Indian  cotton  varies  somewhat  from  ours. 

In  1909  the  amount  of  exports  of  unmanufactured  cotton 
from  the  United  States  was  4,448,000,000  pounds  valued 
at  $417,390,000;  of  this  amount  the  United  Kingdom  took 
1,833,000,000  lbs.,  Germany  1,219,000,000  lbs.,  France  549,- 
000,000  lbs.  and  Italy  283,000,000  lbs.  Outside  of  Europe 
the  only  purchaser  of  our  raw  cotton  of  any  importance 
is  Japan,  to  whom  we  sold  in  1909 — 105,000,000  lbs. 

A rather  disappointing  condition  is  revealed  by  the 
figures  showing  the  export  of  the  cotton  manufactures 
from  the  United  States;  in  1909  their  value  was  about 
$32,000,000,  very  little  indeed  for  a country  raising  within 
its  territory  about  66  per  cent  of  the  staple  and  exporting 
such  tremendous  quantities  of  raw  material.  The  exports 
of  cotton  manufactures  and  yam  from  England  approxi- 


TRADE  AND  COMMERCE 


85 


mate  $500,000,000  a year;  this  latter  country  has  the  larg- 
est number  of  cotton  spindles,  about  53,000,000,  and  in 
1908  consumed  20.4  per  cent  of  the  world’s  mill  supply  of 
cotton;  the  United  States  consumed  about  23.9  per  cent; 
the  smallness  of  our  exports  shows  the  importance  of  our 
home  market  for  the  products  of  our  cotton  mills  and  fac- 
tories. In  addition  to  the  domestic  output  the  United  States 
uses  from  $60,000,000  to  $70,000,000  worth  of  imported  cot- 
ton manufactures,  about  one-half  of  the  imports  consist- 
ing of  laces,  edgings,  embroideries,  etc.  Germany  con- 
sumes about  8.5  per  cent  of  the  world’s  cotton,  British 
India  8.2  per  cent,  Russia  7.9  per  cent,  France  5 per  cent. 

Seventy-five  per  cent  of  the  raw  cotton  used  by  Great 
Britain  comes  from  the  United  States,  18  per  cent  from 
Egypt,  4 per  cent  from  India  and  3 per  cent  from  Brazil. 
Raw  cotton  is  the  largest  single  import  of  Germany,  the 
United  States  supplying  2-3  of  the  amount,  British  India 
and  Egypt  the  rest,  and  manufactured  cotton  is  Germany’s 
principal  export;  in  1908  it  exported  $108,000,000  of  cotton 
fabrics.  France  occupies  the  third  place  as  an  exporter  of 
cotton  goods.  Probably  the  most  interesting  development 
in  the  cotton-manufacturing  industry  of  Europe  during  the 
last  decade,  paralleling  somewhat  the  activity  in  our 
southern  states,  is  the  rise  of  Italy  as  a cotton  manufac- 
turer. Since  1900  it  has  increased  the  number  of  its  spin- 
dles from  1,940,000  to  4,181,000  and  its  consumption  of  raw 
cotton  from  2,375,000,000  pounds  to  5,135,000,000  pounds. 

Flax  is  next  to  cotton  the  most  important  vegetable 
fiber.  It  thrives  in  various  climates,  its  area  of  cultivation 
extending  from  British  India  to  northern  parts  of  Russia. 
The  plant  is  grown  either  for  seed  or  for  fiber,  good  seeds 
usually  meaning  poor  fiber  and  vice  versa. 

Russia  is  the  leading  producer  of  flax,  more  than  one- 
half  of  the  world’s  supply  coming  from  that  country. 
Russia’s  importance  as  a linen  manufacturer  is,  however, 
far  smaller  than  that  of  England;  the  latter  has  ten  times 


86 


SIMON  LITMAN 


as  many  spindles  as  the  first-named  country.  Germany, 
France,  Austria-Hungary  have  also  extensive  linen  manu- 
factures, though  their  production  of  flax  is  insignificant 
as  compared  with  that  of  Russia;  Austria-Hungary,  the 
next  leading  flax  cultivator,  produces  about  one-tenth  of 
the  Russian  output. 

Flax  is  the  strongest  of  plant  fibers,  being  at  the  same 
time  soft  and  pliable;  it  has  been  supplanted  by  cotton  for 
many  purposes,  not  because  of  the  superiority  of  the  latter 
material  but  because  of  its  cheapness.  Probably  the  best 
flax  is  that  grown  in  Belgium,  out  of  which  the  famous 
Brussels  and  other  laces  are  made.  The  preparing  of  flax 
fiber  requires  a large  amount  of  trained  hand  labor  and 
the  countries  where  labor  is  cheap  have,  therefore,  a de- 
cided advantage  over  those  where  it  is  expensive. 

Indirectly  flax  (linen  rags)  is  used  for  the  making  of 
some  of  the  best  grades  of  paper.  In  1909  the  United 
States  imported  $2,542,000  worth  of  flax. 

Hemp  fibers  are  tougher  than  those  yielded  by  flax; 
they  are  used  mostly  for  the  making  of  ropes,  twine  and 
fishing  lines,  as  well  as  for  manufacturing  of  carpets  and 
rugs.  The  fiber  furnishes  also  a substitute  for  flax  in  the 
production  of  all  grades  of  linen  but  the  finer. 

Manila  hemp,  cultivated  in  the  Philippines,  is  the 
strongest  rope  fiber  in  common  use. 

Sisal  hemp,  the  principal  article  of  export  from  Yuca- 
tan (Mexico),  yields  fibers  less  strong  and  not  so  long  as 
those  of  Manila  hemp;  the  fibers  are  much  used  for  the 
making  of  rope,  brushes  and  in  the  manufacture  of  sack- 
ing for  cotton. 

Russia  produces  more  hemp  than  all  the  rest  of  the 
world;  the  plant  is  cultivated  also  in  Italy,  France,  Hun- 
gary, Germany,  the  United  States,  Algeria  and  in  the 
warm  parts  of  Asia. 


i 


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87 


Hemp  seeds  yield  hemp  oil  similar  in  nature  to  linseed 
(flax)  oil;  like  the  latter  it  is  used  mainly  in  soap  and  in 
paint  making. 

The  value  of  the  United  States’  imports  fluctuates  from 
$18,000,000  to  $26,000,000  a year,  most  imports  coming  from 
Manila  and  Mexico. 

Jute  is  a native  of  India  where  it  is  extensively  grown; 
it  is  also  cultivated  in  comparatively  small  quantities  in 
China,  Formosa  and  Malaya.  The  plant  succeeds  best  in 
a hot,  damp  atmosphere.  Jute  fiber  is  used  for  the  manu- 
facture of  gunny  bags,  burlap  cloths,  cotton  baling,  cord- 
age, twine,  carpets,  upholstery  fabrics  and  curtains.  The 
waste  material  goes  into  the  paper-making  industry;  it  is 
known  under  the  name  of  jute  butts. 

In  1909  the  United  States  imported  jute  and  jute  butts 
to  the  value  of  $7,156,000. 

The  United  States’  imports  of  flax,  hemp  and  jute  man- 
ufactures are  about  double  in  value  those  of  its  imports 
of  the  raw  materials;  in  1909  these  imports  were  valued 
at  $49,312,000,  as  against  $65,108,000  in  1907  and  $54,467,- 
000  in  1908. 

Animal  Fibers. — Wool  is  the  chief  animal  fiber  used 
in  the  making  of  textiles;  before  the  advent  of  cotton  it 
was  the  leading  material  of  the  textile  industry.  Wool 
is  a kind  of  hair  forming  the  covering  of  sheep  and  of  a 
few  other  mammals.  It  differs  from  ordinary  hair  by  hav- 
ing minute  overlapping  scales  and  by  being  wavy  and 
crimped.  The  curl  of  the  wool  imparts  elasticity  to  all 
woolen  fabrics,  which  distinguishes  these  from  those  made 
from  cotton,  linen  or  any  other  fibers. 

The  climate  best  adapted  to  sheep  raising  is  one  that 
is  comparatively  dry  and  free  from  extremes  of  cold.  The 
countries  having  the  largest  number  of  sheep  are  Australia 
and  Argentina;  the  first  had  at  the  end  of  1907 — 88,000,000 
heads  and  exported  584,750,000  pounds  of  wool;  the  sec- 
ond with  77,580,000  heads  exported  308,000,000  pounds,  a 


88 


SIMON  LITMAN 


somewhat  larger  proportion  of  sheep  being  raised  for  mut- 
ton in  Argentina  than  in  Australia;  the  other  important 
sheep-raising  countries  are  the  United  States  and  Russia, 
the  total  wool  output  of  the  four  named  nations  equaling 
about  two-thirds  of  the  world’s  supply.  The  rest  of  the 
wool  clip  is  distributed  amongst  a great  number  of  coun- 
tries; in  1908  the  United  Kingdom  had  31,000,000  heads 
of  sheep,  which  yielded  133,700,000  pounds,  an  amount  en- 
tirely inadequate  for  the  needs  of  her  textile  industry; 
the  latter  used  about  428,000,000  pounds  of  imported  wools; 
France,  Uruguay,  British  South  Africa,  Spain,  British 
India,  Germany,  Austria-Hungary,  Italy  are  some  of  the 
other  important  wool  producers.  Raw  wool  is  the  largest 
single  import  of  France;  $116,000,000  worth  of  it  was  im- 
ported in  1907. 

Wool  is  classified  according  to  the  length  of  the  fiber 
into  long-stapled  and  short-stapled  varieties,  the  breed  of 
the  sheep  having  a great  deal  of  influence  upon  the  staple; 
the  other  distinguishing  characteristic  of  various  wools  is 
the  degree  of  their  coarseness  or  fineness.  The  merino 
sheep,  introduced  into  Spain  from  northern  Africa  and 
from  there  exported  for  breeding  purposes  to  other  coun- 
tries, produces  the  finest  wool,  soft,  strong  and  curly;  the 
fiber  is  short  and  is  used  in  making  the  finest  yarns  and 
fabrics.  The  majority  of  the  wools  of  the  United  States, 
the  United  Kingdom,  France  and  Australia  are  long  and 
coarse;  they  are  designated  commercially  as  “ combing,” 
to  distinguish  them  from  the  merino  or  “ clothing”  wools. 
The  name  “ combing”  has  been  given  to  them  because,  be- 
fore being  spun  into  yarn  they  are  combed,  in  order  to 
lay  the  separate  fibers  parallel  to  each  other;  the  short 
staples  are  “ carded,”  the  process  tangling  the  fibers  in 
all  directions. 

In  1909  the  United  States’  imports  of  unmanufactured 
wool  (clothing,  combing  and  carpet),  amounted  to  266,000,- 
000  pounds,  valued  at  $45,000,000;  in  the  same  year  $18,- 


TRADE  AND  COMMERCE 


89 


100,000  worth  of  woolen  manufactures  were  imported;  the 
exports  are  small,  approximating  $2,000,000  annually. 

Great  Britain,  France,  the  United  States  and  Germany 
lead  in  the  manufacture  of  woolen  goods,  consuming  about 
4-5  of  the  world’s  supply  of  wool;  as  their  production  of 
raw  wool  does  not  exceed  1-5  of  the  world’s  clip,  they  de- 
pend upon  imports  of  vast  amounts  of  the  raw  material 
from  Australia,  Argentina,  Uruguay,  etc. 

Silk. — The  production  of  raw  silk  is  confined  to  areas 
suitable  for  the  cultivation  of  the  mulberry  tree,  mulberry 
leaves  forming  the  principal  food  of  the  silkworm.  Next 
to  wool,  silk  is  the  most  important  of  animal  fibers  used 
in  weaving.  The  range  of  climate  for  silk  culture  is  large, 
as  the  mulberry  tree  can  grow  in  various  regions  and  silk- 
worms are  reared  under  cover  protected  from  cold  and 
other  climatic  influences.  However,  the  production  of  raw 
silk  is  as  yet  limited  to  very  few  localities,  the  principal 
of  which  are  China,  Japan,  India,  Italy,  France  and  other 
countries  bordering  the  Mediterranean. 

China  produces  about  27  per  cent  of  the  world’s  supply 
of  raw  silk,  Japan  approximately  the  same  amount  and 
Italy  25  per  cent,  the  three  thus  producing  close  to  80  per 
cent. 

The  geographic  distribution  of  silk  culture  depends  not 
only  on  climate  but  also  on  the  character  and  price  of  labor. 
The  raising  of  the  worm  and  the  preparing  of  raw  silk  for 
the  market  require  a large  amount  of  hand  labor,  labor 
watchful  and  delicate  and  yet  satisfied  with  small  returns 
for  the  work  done. 

The  United  States  and  France  lead  in  the  manufac- 
ture of  silks,  each  importing  raw  material  to  the  value  of 
about  $80,000,000  a year;  Japan  supplies  the  greater  part 
of  the  American  imports;  considerable  quantities  come 
also  from  Italy  and  China.  All  silks  manufactured  in  the 
United  States  are  consumed  in  the  country,  the  exports 
being  less  than  $1,000,000,  while  the  imports  of  silk  manu- 


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SIMON  LITMAN 


faetures  exceed  $30,000,000  a year;  about  one-half  of  the 
latter  amount  is  furnished  by  France.  Silk  textiles  are 
the  most  valuable  single  item  in  the  export  list  of  France, 
with  cotton  textiles  as  a close  second;  in  1907  the  exports 
of  silks  were  valued  at  $72,000,000. 

Other  silk-manufacturing  countries  are  Great  Britain, 
Switzerland,  Germany,  Austria-Hungary,  Japan,  Italy; 
the  silk  manufactures  of  the  latter  country  are  gaining 
in  importance,  although  they  are  not  as  yet  commensu- 
rate with  the  position  of  Italy  as  a producer  of  the  raw 
material. 

Hides  and  Skins  are  used  for  the  manufacture  of 
leather.  As  none  of  the  chief  leather-producing  countries 
have  enough  of  these  raw  materials  to  supply  their  home 
demand,  hides  and  skins  form  an  important  item  of  ex- 
port trade  from  South  America,  Mexico,  Australia  and 
India,  where  stock  raising  is  carried  on  extensively;  the 
importers  are  the  manufacturing  countries  of  Europe  and 
the  United  States.  The  latter  country  imports  goat  skins 
chiefly  from  the  East  Indies  and  South  America,  but  also 
from  Europe,  cattle  hides  and  sheep  skins;  these  products 
form  one  of  the  leading  imports  into  the  United  States; 
in  1909  their  value  was  $78,500,000. 

Vegetable  Oils. 

Vegetable  oils  are  obtained  from  the  fruits  and  the 
seeds  of  many  plants;  the  most  important  commercially 
are  olive  oil,  palm  oil,  cocoanut  oil  and  peanut  oil.  The 
imports  of  olive  oil  into  the  United  States  exceeded  $5,000,- 
000  in  1909;  most  of  the  oil  came  from  Italy  and  France. 
Olives,  from  which  oil  is  derived  grow  most  abundantly  in 
southern  Europe,  in  Mexico  and  in  California. 

Volatile  Oils. 

Essential  or  volatile  oils  are  used  in  medicine,  for  flav- 
oring purposes  and  in  perfumery;  the  most  valuable  of 


TRADE  AND  COMMERCE 


91 


these  oils  are  attar  of  roses,  mint,  wintergreen,  pepper- 
mint, caraway,  sandalwood,  bay,  sassafras,  bitter  almonds. 
Camphor  is  a solid  essential  oil  obtained  from  camphor 
trees.  Most  of  the  camphor  comes  from  Formosa,  though 
some  is  produced  in  Japan,  in  China  and  in  Borneo. 

j 

Dyes. 

Dyes  are  of  vegetable,  animal  or  mineral  origin;  the 
first  two  are  extracts,  the  last  is  an  artificial  chemical  com- 
pound, produced  chiefly  from  coal  tar.  Some  of  the  best 
known  dyes  are:  Indigo,  logwood,  madder,  etc.  Indigo  is 
obtained  from  the  juice  of  the  indigo  plant,  growing  in 
India,  Ceylon,  Java  and  Central  America;  artificial  indigo 
is  manufactured  from  coal  tar,  the  product  competing  suc- 
cessfully with  natural  indigo;  logwood  is  derived  from  a 
tree  growing  in  Central  America  and  in  the  West  Indies; 
madder  is  a powder  made  from  the  roots  of  a plant,  culti- 
vated in  southern  Asia,  in  central  Europe,  etc.  Coal  tar 
dyes  are  manufactured  most  successfully  in  Germany;  from 
there  they  are  sent  all  over  the  world. 

Medicines  (Drugs). 

The  crude  substances  which  yield  medicines  are  called 
drugs;  they  are  of  vegetable,  mineral  or  animal  origin, 
mostly  of  the  first.  Vegetables  having  medicinal  proper- 
ties are  scattered  all  over  the  world,  many  of  them  having 
strong  local  affinities.  As  to  the  demand  for  drugs,  it 
comes  from  every  latitude  and  longitude,  from  every  town 
and  hamlet  where  man  suffers  pain;  therefore  medicinal 
substances  play  an  important  role  in  international  trade. 
Drugs  are  derived  from  barks  and  roots,  seeds  and  leaves, 
twigs  and  flowers  of  various  plants  and  trees;  quinine,  for 
instance,  is  obtained  from  the  cinchona  bark,  the  tree  being 
extensively  cultivated  in  Java,  India  and  Ceylon;  coca 
comes  from  the  leaves  of  a bush  growing  largely  in  the 
Andes  Mountains,  in  South  America;  aconite  is  derived 


92 


SIMON  LITMAN 


from  the  roots  of  a plant  thriving  in  the  Pyrenees,  the 
Alps  and  some  of  the  mountains  of  Germany  and  Austria, 
etc. 

Woods. 

Woods  are  divided  into  needle  leaved  or  coniferous 
which  are  often  called  “soft  woods,”  and  broad  leaved, 
known  as  “hard  woods.”  A few  varieties  of  coniferous 
trees  are  hard  (yellow  pine),  just  as  a few  broad-leaved 
trees  are  very  soft  (cottonwood,  poplar,  linden).  The  larg- 
est amount  of  commercial  lumber  is  obtained  from  conifer- 
ous trees:  pines,  firs,  hemlocks,  redwoods,  spruce;  the  last 
is  used  extensively  in  the  manufacture  of  paper;  other  va- 
rieties of  needle-leaved  trees  are:  larch,  cypress,  white  and 
red  cedar,  etc. 

Broad-leaved  trees  are  more  widely  distributed  than 
coniferous  trees.  They  are  classified  as  close  grained: 
maple,  birch,  sycamore,  holly,  beech;  and  open  grained: 
chestnut,  hickory,  elm. 

Mahogany,  indigenous  to  the  West  Indies,  Central 
America  and  some  parts  of  South  America  and  Africa, 
is  one- of  the  most  valuable  furniture  woods.  It  is  chiefly 
desired  for  its  color,  firmness,  durability  and  the  beauti- 
ful polish  it  is  capable  of  receiving.  Other  tropical  trees 
used  in  furniture  making  are  rosewood,  ebony,  teak. 

Almost  every  commercial  nation  imports  and  exports 
wood  and  its  manufactures.  The  United  States  is  a heavy 
importer  and  exporter,  shipping  logs,  hewn  and  sawed  tim- 
ber, boards  and  planks,  shooks  and  staves  to  Great  Britain 
and  other  European  countries,  to  Argentina,  Canada  and 
Australia.  The  imports  of  the  United  States  comprise  lum- 
ber from  Canada,  wood  pulp  from  northern  Europe,  cabinet 
woods  from  Mexico,  Central  America  and  Africa.  Great 
Britain  is  the  largest  single  buyer  of  wood  in  the  world’s 
markets,  importing  each  year  to  the  value  of  about  $125,- 
000,000. 


TRADE  AND  COMMERCE  93 

Rubber. 

Rubber  is  the  juice  of  certain  tropical  trees  and  vines. 
The  forests  of  the  Amazon  River  valley  furnish  more  than 
half  of  the  world’s  supply,  the  other  rubber-yielding 
regions  being  Mexico,  Central  America,  the  East  Indies 
and  Africa.  The  United  States  and  Great  Britain  are  the 
largest  importers  of  crude  rubber;  they  manufacture  an 
endless  variety  of  substance  depending  upon  rubber  as  raw 
material,  such  as  waterproof  cloth,  shoes,  boots,  tires,  tub- 
ing, hose,  combs,  brushes,  electrical  instruments,  etc.  In 
1909  the  imports  into  the  United  States  were  valued  at 
$64,700,000;  the  exports,  consisting  mostly  of  rubber  manu- 
factures, are  small,  not  exceeding  $7,500,000. 

Rubber  is  graded  commercially,  according  to  the  coun- 
try or  district  of  origin,  and  to  the  degree  of  its  cleanli- 
ness; crude  rubber  contains  more  or  less  large  quantities 
of  dirt,  sand,  bark,  etc. 

Gutta-percha,  a product  similar  to  rubber,  is  found  in 
the  East  Indies,  Malay  Peninsula  and  a few  other  semi- 
tropical  countries. 

Fuels  and  Illuminants. 

Coal  is  a heavy  and  bulky  material  and  because  of  this 
it  does  not  enter  very  prominently  into  foreign  commerce. 
The  leading  exporters  of  coal  are  Great  Britain,  Germany, 
the  United  States  and  Belgium.  The  shipments  from  the 
United  States  in  1909  equalled  11,888,000  tons  valued  at 
$37,316,000;  about  f of  our  exports  went  to  Canada,  most 
of  the  rest  to  Mexico,  to  Cuba  and  other  West  Indian  mar- 
kets. The  largest  proportion  of  the  European  trade  in 
coal  is  also  conducted  with  neighboring  countries,  English 
exports  going  mostly  to  France,  Germany,  Italy,  Sweden, 
Spain,  Russia,  Denmark,  and  German  exports  finding 
their  markets  in  Austria-Hungary,  Holland.  Switzerland 
and  Russia. 


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SIMON  LITMAN 


However,  English  coal  crosses  the  Mediterranean  and 
the  Atlantic,  going  more  than  half  way  around  the  world 
and  supplying  the  demands  for  fuel  in  Egypt,  Argentina, 
Brazil  and  South  Africa.  Exceedingly  cheap  freight  rates 
make  such  shipments  possible.  The  United  Kingdom  is 
the  greatest  importer  of  bulky  freight ; her  exports,  on  the 
other  hand,  consist  of  manufactured  goods.  Many  vessels 
leaving  England  have  therefore  a choice  between  carrying 
ballast  or  coal  as  ballast  substitute;  they  naturally  prefer 
the  latter,  the  freight  they  charge  helping  them  to  pay  the 
expense  of  running  the  ship.  That  most  of  the  coal  is 
moved  across  the  seas  as  ballast  substitute,  may  be  seen 
also  in  comparatively  large  exports  of  coal  from  Japan, 
a country  ranking  low  as  a coal  producer,  but  whose  im- 
ports, like  those  of  England,  are  more  bulky  than  its  ex- 
ports. The  United  States,  notwithstanding  the  abundance 
and  cheapness  of  coal  in  the  country,  has  not  become  an 
important  coal  exporter  because  vessels  leaving  American 
harbors  have  always  at  their  disposal,  cargoes  capable  of 
standing  higher  cost  of  transportation  than  coal. 

Coal  is  the  most  important  mineral.  Its  value  as  a 
generator  of  power  cannot  be  overestimated.  To  use  the 
eloquent  words  of  Prof.  Jevons,  it  is  “the  material  energy 
of  the  country — the  universal  aid — the  factor  in  everything 
we  do,  with  the  aid  of  which  almost  any  feat  is  possible 
or  easy  and  without  which  we  would  be  thrown  back  into 
the  laborious  poverty  of  early  times.”  Coal  pulsates 
through  mills  and  factories,  entering  into  the  blast  fur- 
naces, driving  the  engines,  the  steam  hammers  and  the 
spindles;  it  turns  to  smoke  and  ashes,  but  as  it  burns  it 
vitalizes  every  mechanism  with  which  it  is  brought  into 
contact,  it  transforms  inertness  into  creative  forces  which 
move  and  shape  the  life  of  humanity. 

There  are  many  varieties  of  coal  whose  commercial 
value  depends  upon  the  amount  of  fixed  carbon  they  con- 
tain. The  most  important  of  these  varieties  are  bituminous 


TRADE  AND  COMMERCE 


95 


coal  (soft)  and  anthracite  coal  (hard) ; the  latter  contains 
very  little  moisture  or  volatile  matter  and  because  of  the 
presence  of  a high  percentage  of  carbon — over  85  per  cent 
— it  has  a great  heating  power. 

Petroleum  is  a liquid  bituminous  substance  belonging, 
like  coal,  to  the  group  of  hydrocarbons  and  being,  like 
the  latter,  the  product  of  decomposition  of  organic  matter. 
The  obtaining  of  petroleum  is  practically  confined  to  two 
countries : the  United  States  and  Russia.  In  1907  the  total 
production  of  petroleum  in  the  world  was  262,000,000  bar- 
rels (of  42  gallons),  of  which  amount  the  United  States 
produced  166,000,000  barrels  and  Russia  61,000,000  barrels; 
more  or  less  valuable  oil  fields  exist  also  in  Austria-Hun- 
gary, Roumania,  Japan,  Peru,  Canada  and  on  the  islands 
of  Sumatra,  Java  and  Borneo.  The  crude  oil  of  the  United 
States,  especially  that  coming  from  Ohio,  Pennsylvania  and 
Virginia,  yields  large  quantities  of  illuminating  oils  (about 
75  per  cent),  while  the  Russian  crude  oil  yields  less  than 
half  of  this  amount.  Russian  crude  oil  and  the  oil  obtained 
west  of  the  Mississippi  River  in  the  United  States  (Okla- 
homa, California,  Texas)  are  particularly  useful  as  fuels. 

The  United  States  and  Russia  produce  far  in  excess 
of  their  home  consumption  and  ship  vast  quantities  of  oil 
abroad.  In  1909  the  value  of  the  exports  from  the  United 
States  was  close  to  $106,000,000,  most  of  which  consisted 
of  illuminating  and  lubricating  oils;  the  buyers  of  our  oil 
are  scattered  all  over  the  world,  in  Europe  and  in  Asia,  in 
Central  and  in  South  America,  in  Africa  and  in  Australia. 

Metals. 

Iron  is  found  in  all  parts  of  the  world,  but  in  many 
places  it  is  not  mined  because  of  distance  from  coal  and 
limestone,  necessary  for  smelting,  poor  means  of  transpor- 
tation and  lack  of  capital.  The  leading  producers  of  iron 
are  the  United  States,  England  and  Germany.  Iron  in 
its  natural  state  is  combined  with  other  mineral  sub- 


96 


SIMON  LITMAN 


stances  and  is  known  as  iron  ore;  from  this  ore  pig  iron 
is  made  by  means  of  smelting  in  a blast  furnace. 

Cast  iron  is  pig  iron  remolten  and  shaped  in  sand 
moulds.  As  it  contains  many  impurities  (sulphur,  phos- 
phorus, silicon,  carbon),  it  is  brittle. 

Wrought  iron  is  made  from  pi g iron;  the  latter  under- 
goes several  processes  of  remelting  in  order  to  remove  the 
impurities.  Wrought  iron  is  rolled  or  hammered  into  bars, 
sheets  and  other  forms.  Because  of  the  expense  of  manu- 
facture it  has  been  largely  superseded  by  certain  grades 
of  steel,  which  is  for  most  purposes  just  as  satisfactory 
and  not  so  high  priced.  The  most  important  processes  of 
steel  manufacture  are  the  Bessemer  and  the  open  hearth. 

The  United  States  exports  some  iron  ore  and  some  pig 
iron  and  large  quantities  of  iron  and  steel  manufactures; 
the  latter  comprise  rails,  sheets  and  plates,  wire,  builders’ 
hardware,  locomotives,  typewriting  and  sewing  machines, 
cash  registers,  pipes  and  fittings,  stoves,  etc.;  the  total 
value  of  these  exports  declined  from  $181,500,000  in  1907 
to  $145,000,000  in  1909. 

Copper  is  found  pure  or  in  the  form  of  ores.  The 
United  States  is  the  leading  copper  producer,  yielding  about 
400,000  tons,  or  more  than  half  of  the  world’s  output.  In 
1907,  Mexico  was  second  in  importance,  followed  by  Spain 
and  Portugal,  Japan,  Australia,  Chile  and  Germany;  the 
latter  country  imports  large  quantities  of  the  metal.  In 
1909  the  value  of  the  United  States’  exports  of  copper  in- 
gots, bars,  plates,  etc.,  was  $85,300,000. 

Copper  is  an  excellent  conductor  of  electricity  and  the 
demand  for  it  has  greatly  increased  in  recent  years  follow- 
ing the  growth  of  electrical  industries. 

Bronze  is  a compound  of  copper  and  tin,  brass  a com- 
pound of  copper  and  zinc. 

Tin  is  obtained  mainly — more  than  three-fourths  of  the 
world’s  supply — in  the  Straits  Settlements  (Malay  Penin- 
sula and  the  neighboring  islands).  It  is  found  also  in 


TRADE  AND  COMMERCE 


97 


Bolivia,  Australia  and  in  Cornwall,  England.  There  are 
no  large  tin  deposits  in  the  United  States,  and  most  of  the 
metal  used  is  imported  from  Great  Britain  and  the  Straits 
Settlements.  Tin  is  used  mainly  for  the  making  of  tin 
plates  (sheet  iron  dipped  in  molten  tin). 

Zinc  is  found  chiefly  in  Germany,  Belgium  and  the 
United  States.  Galvanized  iron  is  made  by  dipping  sheet 
iron  in  melted  zinc. 

Lead  is  mined  in  the  United  States,  Mexico,  Spain  and 
Germany;  the  production  in  the  United  States  is  not  suf- 
ficient to  cover  the  home  demand  and  large  quantities  are 
imported  from  Mexico. 

Gold  is  found  in  most  parts  of  the  world,  but  the  rich- 
est gold  fields  are  those  of  the  United  States,  South  Africa 
and  Australia.  The  chief  use  of  gold  is  for  the  making 
of  coins,  because  of  its  peculiar  characteristics:  malleabil- 
ity, corrosiveness,  value  in  comparison  to  bulk,  the  diffi- 
culty of  counterfeiting,  etc.  Most  civilized  nations  have 
adopted  gold  as  their  standard  currency.  Gold  is  also 
used  in  the  jeweler’s  art,  in  dentistry,  and  for  ornamental 
and  decorative  purposes.  Gold  is  shipped  from  country 
to  country  to  settle  fiscal  balances. 

Silver  is  the  second  most  valuable  precious  metal.  It 
is  used  for  coinage  and  in  some  countries  as  a monetary 
standard.  Its  reliability  in  this  latter  respect  is  impaired 
by  fluctuations  in  value.  Like  gold,  silver  is  used  for  many 
industrial  purposes.  France  leads  in  the  manufacture  of 
gold  and  silver  wares. 

Various  other  metals — platinum,  quicksilver,  alumi- 
num, etc. — are  found  in  different  parts  of  the  world  and 
are  objects  of  international  trade. 

VIII.  COUNTRIES  AND  THEIR  PRODUCTS. 

Economically  wTe  may  classify  the  countries  of  the  world 
into  three  groups: 

(1)  Those  whose  economic  activity  has  achieved  the 
highest  degree  of  efficiency.  They  produce  on  a large  scale 

B— IV  9-7 


98 


SIMON  LITMAN 


macliine-made  goods  both  for  home  consumption  and  for 
export  and  their  financial  and  commercial  relations  con- 
nect them  more  or  less  closely  with  other  countries.  They 
appear  as  competitors  in  the  world’s  markets. 

(2)  Those  whose  manufacturing  industries  have  pro- 
gressed sufficiently  far  to  satisfy  most  of  their  home  de- 
mand for  factory  products,  but  whose  share  in  interna- 
tional trade  in  these  products,  as  far  as  exports  go,  is  com- 
paratively small. 

(3)  Those  whose  industrial  activities  are  mainly  of 
an  extractive  character;  they  produce  raw  materials  and 
semi-finished  commodities,  and  their  manufactures  are 
either  made  by  primitive  methods  at  home  or  imported 
from  abroad. 

It  is  difficult  to  draw  a demarcation  line  between  these 
groups  and  it  is  just  as  difficult  to  assign  some  countries 
to  any  one  of  them;  but  such  a classification  permits  one 
to  view  each  country  from  a definite  and  a commercially 
significant  standpoint. 

The  most  important  countries  belonging  to  the  first 
group  are  the  United  States,  Great  Britain,  Germany  and 
France;  to  these  we  may  add  Belgium,  Netherlands,  Switz- 
erland and  to  some  extent  Austria-Hungary  and  Italy. 

The  United  States  is  at  present  the  greatest  manufac- 
turing nation  of  the  world.  According  to  the  census  of 
1905,  the  value  of  our  manufactured  products  was  equal 
to  $16,866,000,000.  The  estimated  value  of  the  manufac- 
tures of  England  in  1904  was  $5,000,000,000;  of  Germany 
$4,666,000,000;  of  France  $3,500,000,000;  of  Austria-Hun- 
gary $2,000,000,000;  of  Russia  $2,000,000,000;  of  Italy 
$1,750,000,000;  of  Belgium  $750,000,000. 

The  total  value  of  manufactures  entering  international 
trade  is,  in  round  figures,  $4,000,000,000,  of  which  the  Unit- 
ed States  supplies  but  $500,000,000,  or  12J  per  cent  of  the 
total. 

In  the  second  group  of  our  division  we  may  place 
Russia,  Spain,  Portugal,  Sweden,  Norway  and  other  Eu- 
ropean nations  not  enumerated. 


TRADE  AND  COMMERCE 


99 


The  countries  of  Southern  and  Central  America,  Asia, 
Africa  and  Australia  belong  to  the  third  group.  Their 
industries  are  in  a formative  period,  some  having  advanced 
farther  than  others,  but  all  showing  the  same  character- 
istics: the  export  of  breadstuff  s,  foodstuffs  and  raw  ma- 
terials, and  the  imports  of  manufactures. 

Europe. 

The  chief  manufacturing  nations  of  Europe  are  grouped 
in  the  northwestern  part  of  the  continent;  these  are  Great 
Britain,  France,  Belgium,  Holland,  Germany  and  Switzer- 
land. Agricultural  pursuits  are  predominant  in  the  south 
and  in  the  east:  in  Spain,  Italy,  Austria-Hungary,  Rou- 
mania  and  Russia. 

The  first-named  countries,  washed  by  the  Atlantic 
Ocean  and  the  North  Sea,  possess  many  of  the  necessary 
elements  which  go  towards  making  industrial  and  com- 
mercial greatness;  if  these  elements  are  not  found  in  the 
superabundance  of  natural  resources  (many  materials  be- 
ing imported),  then  they  are  contained  in  the  personal 
characteristics  of  their  people,  who  are  industrious,  re- 
sourceful, inventive,  daring  in  their  colonial  and  commer- 
cial enterprises. 

All  these  countries  of  dense  population,  whose  ener- 
gies are  largely  used  for  manufacturing  and  commerce 
as  the  most  profitable  and  in  some  instances  the  only  pos- 
sible pursuits,  import  considerable  quantities  of  food,  raw 
materials  and  partially  manufactured  wares. 

The  countries  of  the  south  and  of  the  east  of  Europe 
export  cereals,  other  foodstuffs  and  raw  materials.  There 
are  notable  exceptions  to  this  general  statement;  for  in- 
stance, certain  rapidly  developing  manufacturing  indus- 
tries of  Italy  and  Austria  and  the  gradual  transition  of 
Russia  from  a purely  agricultural  to  an  agricultural-manu- 
facturing state,  but  the  classification  given  is  of  value, 
because  it  indicates  the  main  characteristics  of  trade  and 
commerce  in  two  vastly  different  sections  of  Europe. 


100 


SIMON  LITMAN 


The  United  Kingdom  of  Great  Britain  and  Ireland  leads 

the  commercial  nations  of  the  world  in  the  quantity  and 
in  the  value  of  its  foreign  commerce.  Its  insular  position, 
almost  in  the  center  of  the  northern,  continental  part  of 
the  world,  near  the  markets  of  Europe  and  on  the  passage- 
way between  European  countries  and  North  America,  has 
to  a very  large  extent  contributed  to  its  commercial  sig- 
nificance. 

The  climate  of  the  British  Isles  is  mild  and  equable 
and  most  of  their  soil  can  be  used  for  purposes  of  agri- 
culture, the  highlands  of  Scotland  having  the  largest 
amount  of  unproductive  area.  Notwithstanding  this  the 
population  of  Great  Britain  finds  its  chief  occupation,  not 
in  agriculture,  but  in  manufactures,  shipping  and  com- 
merce, and  the  wealth  of  the  country  is  based  not  so  much 
upon  the  labors  of  the  husbandmen  as  upon  those  of  the 
coal-miner,  the  worker  in  the  mills  and  factories,  and  the 
sailor. 

England’s  agriculture  is  of  a most  intensive  character, 
but  it  produces  far  from  a sufficient  amount  to  support 
its  population;  consequently,  England  imports  wheat  and 
other  cereals.  Great  Britain  with  its  large  army  of  in- 
dustrial laborers  and  a comparatively  small  number  of 
farmers,  with  its  free  trade  policy  which  keeps  the  price 
of  grain  down  and  thus  favors  a large  consumption  of  this 
staple,  has  been  for  a long  time  a converging  point  for 
thousands  of  cargo  laden  ships,  which  unite  its  harbors, 
its  factories,  its  mining  camp  with  the  wheat  fields  of 
the  new  and  the  old  worlds. 

Great  Britain  is,  also,  one  of  the  best  consumers  of 
foreign  raw  materials,  its  own  comparatively  small  terri- 
tory not  providing  a sufficiently  broad  foundation  for  the 
huge  superstructure  of  its  blast  furnaces  and  rolling  mills, 
cotton  and  woolen  factories,  etc.  Some  materials  like  cot- 
ton, for  instance,  cannot  be  produced  in  England  at  all; 
others,  like  iron  ore,  are  not  present  in  sufficient  quantity 
or  lack  the  necessary  qualities;  others  could  be  obtained 
at  home,  but  it  is  more  profitable  to  import  them  and  to 


TRADE  AND  COMMERCE 


101 


devote  the  capital,  the  energy  and  the  skill  of  the  country 
upon  elaborative  processes,  thus  adding  many  fold  upon 
the  original  investments  represented  in  the  purchase  of 
the  raw  material. 

The  chief  exports  of  Great  Britain  and  Ireland  are  cot- 
ton, woolen,  linen  and  jute  manufactures  and  yarn,  coal, 
metals,  machinery,  hardware  and  cutlery;  the  principal 
articles  of  import  include  grain  and  flour,  meat  and  dairy 
products,  raw  cotton  and  wool,  wood  and  timber,  petro- 
leum, sugar,  tea  and  coffee,  fruits  and  hops,  eggs,  tobacco, 
etc. 

France  with  a territory  less  than  Texas  has  almost  as 
many  farms  as  the  United  States;  this  goes  to  show  that 
the  acreage  of  individual  farms  is  small  there. 

One-half  of  the  French  soil  is  arable ; the  soil  is  fertile 
and  productive,  and  grain  fields,  yielding  abundantly  to 
close  methods  of  farming,  cover  one-fourth  of  the  repub- 
lic. Wheat  is  the  largest  crop,  but  notwithstanding  the 
size  of  the  wheat  yield,  from  30  to  35  millions  of  bushels 
are  annually  imported.  Next  to  wheat,  oats  is  the  leading 
crop. 

Sugar  beets  are  raised  extensively  on  the  plains  of  the 
North,  France  being  one  of  the  largest  beet  sugar  pro- 
ducers. Of  importance  are  the  crops  of  chestnuts,  wal- 
nuts, olives,  plums,  cider,  apples  and  mulberry  leaves. 

France  leads  the  world  in  wine  production;  grapes  are 
cultivated  mostly  in  the  southern  and  eastern  provinces, 
whose  soil  and  climate  are  well  adapted  to  the  industry. 
French  wines,  because  of  their  superior  quality  and  their 
reputation,  find  a ready  market  in  Great  Britain,  in  all 
north  European  countries,  in  the  United  States  and  other 
American  republics  as  well  as  in  the  Orient. 

The  fishing  industry  of  France  employs  close  to  100,- 
000  people,  herring,  oysters,  sardines,  mackerel,  sprats  and 
tanny  fish  being  the  main  products. 

While  France  has  important  coal  beds,  they  do  not 
yield  a sufficient  amount  for  the  needs  of  the  country  and 
it  imports  large  quantities  of  this  mineral  from  its  neigh- 


102 


SIMON  LITMAN 


bors,  Belgium,  Germany  and  England.  Iron  ore  is  plen- 
tiful, but  in  many  cases  it  is  far  from  the  coal  deposits; 
the  most  important  developments  in  the  production  of  iron 
and  steel  have  taken  place  at  Creuzot  and  St.  Etienne, 
where  the  two  minerals  are  found  in  proximity;  the  other 
two  important  iron  and  steel  centers  are  Marseilles  and 
Bordeaux,  their  location  permitting  the  use  of  waterways 
for  the  transportation  of  coal  and  iron. 

France  excels  in  the  making  of  wares  requiring  artis- 
tic skill,  but  in  the  production  of  cheap  commodities,  which 
are  the  result  of  the  extensive  use  of  modern  machinery 
and  of  elaborate  business  organization,  it  is  far  behind 
Great  Britain,  Germany  and  the  United  States. 

Manufactures  of  gloves  and  other  fancy  leather  goods, 
of  jewelry,  perfumery,  porcelain,  millinery  and  dresses 
are  some  of  the  characteristic  industries  in  and  around 
Paris,  the  capital  of  the  country  and  its  intellectual  and 
financial  center. 

Textiles,  if  we  include  under  this  heading,  the  making 
of  cloths,  lace,  ribbons,  etc.,  employ  close  to  2,000,000  per- 
sons; the  goods  are  noted  for  their  fine  texture  and  supe- 
rior quality. 

The  principal  imports  of  France  are  wool,  raw  silk  and 
raw  cotton,  coal  and  coke,  oil  seeds,  timber  and  wood,  ce- 
reals, hides  and  furs,  wine,  ores;  the  chief  exports  con- 
sist of  silk,  cotton  and  woolen  textiles,  raw  wool  and  yarn, 
raw  silk  and  yarn,  wine,  leather  and  leather  goods,  linen 
and  clothes,  skins  and  furs,  chemical  products,  cheese  and 
butter,  sugar  and  spirits. 

Germany. — Since  the  establishment  of  the  German  Em- 
pire in  1871,  the  country  has  undergone  a tremendous 
transformation.  Out  of  agricultural  states  torn  by  politi- 
cal conflicts,  there  has  emerged  a united  people,  conscious 
of  its  strength,  full  of  vigor  and  of  belief  in  its  destiny. 
The  nation  of  scientists  and  philosophers,  poets  and  musi- 
cians, of  sturdy  peasants  tilling  the  sandy  soil  and  of 
soldiers  trained  on  bloody  battlefields  has  turned  its  at- 


TRADE  AND  COMMERCE  103 

tention  to  industry  and  commerce;  the  results  are  mar- 
velous. 

The  struggles  of  the  past  with  man  and  nature  have 
laid  their  impress  upon  the  character  of  the  German 
workingman.  He  is  deeply  in  earnest  in  whatever  he  does, 
steadfast  and  thrifty.  He  knows  how  to  utilize  to  the  ut- 
most every  resource  at  his  disposal,  to  turn  to  advantage 
every  opportunity.  Through  his  toil  little  plains,  covered 
with  scrub  pine  were  transformed  into  grain  fields,  or- 
chards and  gardens;  shallow  unnavigable  streams  were 
canalized  and  impressed  into  the  service  of  commerce;  in- 
dustrial centers  were  planted  in  the  midst  of  seemingly 
valueless  stretches  of  barren  land. 

The  German  Empire  is  a confederation  of  twenty-six 
states,  occupying  211,000  square  miles  in  the  central  part 
of  Europe.  Its  position  in  the  north  temperate  zone  makes 
it  a country  of  forests,  fields  and  pastures.  Scientific 
methods  of  cultivation  have  reduced  the  percentage  of  un- 
productive soil  to  about  one-twentieth  of  the  total  area, 
arable  land  equaling  48.7  per  cent,  hay  and  pasture  20.3 
per  cent  and  forests  25.7  per  cent. 

The  chief  cereal  crops  of  the  Empire  are  rye,  oats, 
wheat  and  barley,  the  first  two  leading;  Germany  because 
of  its  climatic  conditions  and  the  nature  of  its  soil  (poor 
and  sandy  in  most  parts  of  Prussia),  is  more  adapted  to 
the  raising  of  hardy  plants,  like  rye  and  oats,  than  to  the 
cultivation  of  wheat.  Notwithstanding  high  duties,  large 
quantities  of  the  latter  are  imported,  the  imports  gaining 
in  volume  and  value  because  of  the  rapid  growth  of  popu- 
lation and  its  concentration  in  industrial  and  commercial 
centers. 

Besides  cereals,  the  products  of  the  German  soil  con- 
sist of  potatoes,  hay,  clover,  sugar,  beetroot,  wine  grapes, 
hops,  tobacco  and  fruits. 

Germany  is  rich  in  minerals,  her  output  being  now 
larger  than  that  of  any  other  country  in  Europe,  except 
Great  Britain.  The  mineral  deposits  include  coal,  iron 
ore,  copper,  silver,  lead  and  zinc. 


104 


SIMON  LITMAN 


The  forests  supply  fuel,  as  well  as  material  for  build- 
ing purposes  and  for  a great  number  of  manufacturing 
industries.  The  chief  woods  of  Germany  are  oak,  beech, 
spruce,  walnut  and  birch. 

Manufactures  are  varied;  the  most  highly  developed 
are  iron  and  steel,  textiles,  sugar  refineries,  breweries,  pro- 
duction of  chemicals,  of  leather  goods,  etc. 

Raw  materials  and  foodstuffs  constitute  the  largest 
item  of  imports,  the  first  representing  about  50  per  cent, 
the  second  35  per  cent  of  the  total;  manufactured  commod- 
ities, particularly  textiles,  metallic  wares,  machines,  chem- 
icals, colors  and  leather  goods,  predominate  in  the  ex- 
ports. 

The  United  States  leads  in  the  value  of  imports,  fol- 
lowed by  Russia,  Austria-Hungary,  Great  Britain,  France 
and  Argentina.  Most  of  the  exports  go  to  Great  Britain, 
the  United  States,  Austria-Hungary,  Switzerland  and 
Russia. 

Austria-Hungary  is  pre-eminently  a country  of  tillers 
of  the  soil  and  raisers  of  stock,  agricultural  industries  giv- 
ing employment  to  over  one-half  of  the  population  of  Aus- 
tria and  more  than  two-thirds  of  that  of  Hungary.  Aus- 
tria, however,  because  of  its  vast  store  of  mineral  wealth 
has  a number  of  manufactures,  the  most  important  of 
which  are  textiles,  metal  working,  machine  making,  glass 
industry,  sugar  refining,  and  brewing.  The  population  in 
many  of  the  industrial  districts  of  Austria  is  possessed  of 
artistic  ability,  has  deftness  and  skill,  and  the  products 
of  her  factories  (Bohemian  crystal  and  porcelain,  etc.)  com- 
pete favorably  with  those  of  any  other  country;  but  manu- 
facturing in  general  has  been  greatly  retarded.  The  eco- 
nomic life  of  the  country  has  been  hampered  by  antago- 
nism amongst  the  various  nationalities  comprising  the  dual 
monarchy,  by  race  animosity,  hereditary  distinctions  and 
jealousies,  church  influences,  etc. 

Labor  is  cheap  and  because  of  this,  new  methods  and  ma- 
chinery are  introduced  very  slowly,  both  in  the  field  and 


TRADE  AND  COMMERCE 


105 


in  the  shop;  the  flour  milling  industry  is  a notable  excep- 
tion; Hungarian  mills  use  the  best  mechanical  appliances 
and  produce  flour  of  high  quality  which  is  sought  by  other 
European  nations.  Oats,  rye  and  barley  are  the  principal 
crops  of  Austria,  while  the  Hungarian  plains  produce  much 
wheat  and  corn.  Other  agricultural  products  of  the  Empire 
include  beet  sugar,  tobacco,  wine,  grapes.  Good  grades  of 
wine  (Tokay  from  Hungary)  are  exported,  but  imports 
exceed  exports.  Poultry  raising  is  an  important  commer- 
cial item,  over  two  billions  of  eggs  being  exported  annually. 

A valuable  economic  asset  are  the  forests;  so  also  are 
the  pastures  and  meadows  on  which  graze  millions  of  cat- 
tle, horses  and  sheep. 

Most  of  the  commerce  of  Austria-Hungary  is  carried 
on  with  adjoining  states,  the  value  of  exports  from  and 
imports  into  Germany  being  about  one-half  of  the  total 
foreign  trade  of  the  Kingdom.  Great  Britain  is  the  next 
best  customer  of  Austria-Hungary,  followed  by  Italy,  Rus- 
sia, Turkey  and  Roumania. 

Foreign  commerce  of  Austria-Hungary  suffers  because 
of  lack  of  seacoast,  its  only  outlet  being  a narrow  strip 
on  the  Adriatic. 

The  chief  exports  are  sugar,  eggs,  wood  and  woodwork, 
corn  flour,  wheat,  glass  and  glassware,  cattle,  leather  goods 
and  coal;  the  imports  consist  of  raw  cotton  and  wool,  cot- 
ton and  woolen  goods,  silk  and  silk  manufactures,  hides, 
skins  and  prepared  leather. 

Switzerland — a small  inland  country  of  lofty  snow  cov- 
ered mountains,  deep  green  fertile  valleys,  beautiful  lakes, 
streams  and  waterfalls — has  achieved  a high  position  as 
a manufacturing  and  commercial  nation;  this,  notwith- 
standing the  fact  that  it  lacks  mines  of  coal  and  iron,  has 
no  seacoast  and  is  hedged  in  between  mountainous  walls. 

One-half  of  the  country  lies  above  the  zone  of  agricul- 
ture and  only  one-sixth  of  the  area  can  be  cultivated. 
Switzerland  imports  considerable  quantities  of  wheat, 


106 


SIMON  LITMAN 


partly  to  supply  the  needs  of  her  own  population,  partly 
for  tourist  trade. 

Dairying  is  the  most  important  branch  of  Swiss  agri- 
cultural and  pastoral  industries;  it  prospers  because  of  the 
abundance  of  hay  and  pasture  lands  on  the  mountain 
slopes,  pastures  kept  perennially  green  by  the  melting 
snow.  Switzerland  exports  cheese,  condensed  milk  and 
milch  cows;  imports  beef  cattle. 

Manufactures  are  carried  on  either  in  small  factories 
or  as  hand  crafts  and  rely  for  their  competitive  qualities 
upon  the  skilled,  technically  educated  and  at  the  same 
time  inexpensive  labor.  The  chief  industries  are  textiles 
(fine  silk  and  cotton  fabrics,  trimmings  and  embroideries), 
watch  making,  wood  carving,  production  of  chemicals,  of 
leather  goods,  of  scientific  instruments,  metal  works  and 
straw  plaiting. 

The  chief  imports  of  Switzerland  are  cereals  and  other 
food  substances,  silk  and  cotton  goods,  raw  materials;  the 
exports  are  nearly. all  manufactures:  silk  and  cotton  tis- 
sues, metals,  etc. 

Switzerland  each  year  attracts  thousands  of  tourists 
from  the  United  States  and  Europe,  who  enrich  her  to  the 
extent  of  many  millions. 

Most  of  the  Swiss  manufactures  find  purchases  in  the 
near-by  markets  of  Germany,  France,  Austria-Hungary 
and  Italy;  considerable  quantities  are  shipped  to  the 
United  States;  in  1909  the  value  of  the  latter  was  $23,830,- 
000,  while  the  imports  from  that  country  were  only  $75,000. 

Belgium  with  a territory  of  11,373  square  miles  has  a 
population  of  about  7,500,000,  thus  being  one  of  the  most 
densely  populated  states  in  the  world.  About  49  per  cent 
of  the  area  is  arable  land,  26  per  cent  is  hay  and  pasture, 
16.5  forest  and  the  rest  is  unproductive. 

Oats,  rye,  wheat  and  potatoes  are  the  leading  crops,  but 
the  amount  of  breadstuffs  produced  does  not  cover  the 
home  demand  and  wheat  is  an  item  of  import.  Sugar 


TRADE  AND  COMMERCE 


107 


beets  are  grown  in  large  quantities,  and  some  sugar  is  ex- 
ported; flax  and  hemp  are  also  farm  products  of  some  im- 
portance. Poultry  is  raised  throughout  Belgium  and  fur- 
nishes eggs  and  young  fowls  for  the  markets  of  England 
and  northern  France. 

The  chief  industries  of  Belgium  are  mining  and  manu- 
facturing. Belgium  has  rich  coal  deposits,  mining  annually 
over  23,000,000  tons  of  coal;  one-fourth  of  this  amount  is 
exported  to  France,  the  rest  is  consumed  at  home.  The 
quantity  of  iron  ore  found  in  the  country  is  insufficient  for 
its  industries,  and  ore  is  therefore  imported.  Abundant 
coal  supply,  dense  population,  skilled  labor  and  available 
capital  make  Belgium  a pre-eminently  manufacturing  and 
commercial  state. 

The  chief  exports  from  Belgium  are  machinery,  iron 
and  steel,  flax,  woolen  and  cotton  tissues,  diamonds  (re- 
exportation after  cutting),  glass,  raw  hides,  sugar,  while 
imports  consist  of  wheat,  timber,  raw  wool,  flax,  cotton,  and 
colonial  goods. 

France,  Germany,  Great  Britain,  the  United  States  and 
the  Netherlands  are  the  leading  exporters  from  and  im- 
porters into  Belgium,  the  United  States  shipping  wheat, 
corn,  cotton,  meats,  petroleum,  tobacco,  to  the  value  of 
$45,093,000  (figures  given  for  1909). 

The  Netherlands  is  mainly  an  agricultural  and  a com- 
mercial country.  A large  portion  of  its  surface  is  marshy, 
but  the  land  that  is  arable,  is  very  fertile;  this  is  particu- 
larly true  of  the  area  that  has  been  reclaimed  from  the 
sea.  The  soil  is  moist  there  and  excellent  breeds  of  cattle 
graze  on  its  rich  pastures,  yielding  abundantly  milk,  either 
sold  directly  or  manufactured  into  butter  and  cheese. 

The  principal  crops  are  rye,  potatoes,  oats,  wheat,  sugar 
beets  and  pulses.  Truck  gardening  and  the  growing  of 
flowers  furnish  articles  of  export  to  many  large  cities  of 
continental  Europe  and  Great  Britain. 


108 


SIMON  LITMAN 


Mining  is  of  little  importance  owing  to  the  lack  of  nat- 
ural deposits;  this  absence  of  minerals  hinders  the  manu- 
facturing development  of  the  country.  Cotton,  linen  and 
woolen  factories,  sugar  refineries,  brewing  and  distilling 
(curagao,  gin),  the  making  of  earthenware,  furnish  some 
products  for  export. 

The  Netherlands  stands  in  the  front  rank  as  a com- 
mercial nation,  being  the  fifth  country  in  the  value  of  its 
foreign  trade;  a great  deal  of  this  commerce  is  transit  from 
and  to  Germany. 

The  Netherlands  imports  and  exports  large  quantities 
of  iron  and  steel,  copper,  cereals,  flour,  etc.;  the  exports 
of  her  home  products  consist  mainly  of  butter,  cheese, 
meats,  sugar,  oleomargarine  and  flax,  while  the  imports 
for  home  consumption  are  cereals  and  flour,  coal,  mineral 
oil,  coffee,  etc.  Most  products  are  shipped  to  Prussia 
(50.3  per  cent  in  1907),  Great  Britain  and  Belgium;  the 
United  States,  taking  3.9  per  cent  of  the  total  exports,  occu- 
pies the  fourth  place;  10.9  per  cent  of  imports  for  home 
consumption  come  from  the  United  States. 

Sweden  occupies  the  eastern  part  of  the  Scandinavian 
Peninsula.  Forests  cover  about  one-half  of  the  land  area 
of  Sweden  and  their  products  form  a staple  export.  Only 
9 per  cent  of  the  country  is  under  cultivation  and  about 
3 per  cent  is  pastures  and  meadows.  The  chief  crops  are 
oats,  rye  and  barley;  considerable  quantities  of  com  and 
flour  are  imported. 

Mining  is  one  of  the  leading  departments  of  Swedish 
industry,  particularly  mining  of  iron  ore.  In  1907 — 4,480,- 
000  tons  of  iron  ore  were  extracted;  however,  metallurgical 
industries  are  not  developed,  and  most  of  the  ore  (3,521,000 
tons)  is  exported  either  to  Great  Britain  or  to  Germany. 

Timber  and  woodwork  furnish  the  chief  articles  of 
export,  other  articles  in  the  order  named  being  minerals, 
metal  goods  and  machinery,  live  animals  and  animal  prod- 
ucts, paper,  etc. 


TRADE  AND  COMMERCE 


109 


The  imports  consist  of  coal  and  other  minerals,  metal 
goods  and  machinery,  raw  textile  material  and  textile 
manufactures,  cereals,  colonial  wares. 

The  principal  countries  with  whom  Sweden  trades  are 
Great  Britain,  Germany,  Denmark,  the  United  States,  Nor- 
way. 

Norway,  of  whose  total  area  75  per  cent  is  unproductive, 
is  a high  tableland  of  forbidding  desolate  aspect,  with 
mosses  and  lichens  as  its  only  vegetation;  over  20  per  cent 
are  under  forests,  mostly  the  coniferous  pine  and  spruce; 
the  rest,  less  than  4 per  cent,  is  under  crops  and  grass. 

Fisheries  are  very  important,  the  main  catch  consisting 
of  cod,  herring  and  mackerel.  Practically  all  the  ports  of 
Norway  are  fishing  ports.  The  population  of  Norway  has 
always  been  necessitated  to  depend  upon  the  sea  as  its 
means  of  support,  the  country’s  barren  soil  and  its  rigor- 
ous climate  preventing  agricultural,  pastoral  or  any  other 
industrial  pursuits. 

Norway  possesses  a very  large  merchant  marine,  the 
largest  in  the  world  in  proportion  to  its  population;  Nor- 
wegian steamers  and  sailers  may  be  found  on  most  seas 
carrying  the  goods  of  many  nations. 

The  chief  exports  of  Norway  are  timber  and  wooden 
goods,  fish,  paper;  imports  consist  of  breadstuffs,  particu- 
larly rye,  of  tallow,  oils,  tar  and  rope,  coal,  metals  and 
metal  manufactures. 

Denmark  occupies  the  peninsula  of  J utland  and  a few 
islands  between  the  North  Sea  and  the  Baltic.  Of  the  total 
area  about  40  per  cent  is  under  cultivation  and  40  per  cent 
in  pasture  and  meadow. 

Dairying  and  poultry  raising  are  the  most  important 
occupations,  and  butter,  eggs  and  meats  form  the  chief 
items  of  its  export  trade.  The  production  of  milk,  butter 
and  cheese  is  placed  on  a most  scientific  and  sanitary  basis, 
and  these  products  find  a ready  market  wherever  they  are 
sent.  The  same  is  true  of  the  egg  industry,  controlled  by 


110 


SIMON  LITMAN 


co-operative  organizations  whose  members  are  pledged  to 
deliver  none  but  freshly  laid  eggs. 

Oats,  barley  and  rye  are  the  leading  cereals  raised,  the 
latitude  being  somewhat  high  for  the  successful  cultivation 
of  wheat;  beet  roots  are  grown  and  in  1907  about  53,000  tons 
of  beet  sugar  were  produced. 

Manufactures  are  few  and  of  comparatively  little  sig- 
nificance. 

The  chief  imports  consist  of  cereals,  provisions,  metals, 
hardware,  coal,  textile  manufactures  and  colonial  goods. 

The  United  States’  exports  to  Denmark  have  fallen 
from  $23,384,000  in  1907  to  $17,522,000  in  1909,  while  the 
imports  show  an  increase:  $1,125,000  in  1907  against  $1,625,- 
000  in  1909. 

Italy,  although  surrounded  by  the  sea  (Mediterranean) 
has  hot  and  dry  summers  in  the  central  and  southern  parts 
of  the  country,  necessitating  artificial  irrigation.  In  the 
north,  the  rainfall  is  abundant  and  evenly  distributed 
throughout  the  year;  it  is  there  that  agriculture  reaches 
its  highest  development.  About  70  per  cent  of  the  Italian 
soil  is  classified  as  productive. 

The  southern  latitude  of  the  country  and  its  varying 
altitude  (the  Apennines  traverse  the  peninsula  and  the 
Alps  cap  it)  permit  the  growth  of  tropical  as  well  as  of 
temperate  region  crops.  The  latter,  like  wheat,  are  not 
sufficient  to  supply  the  home  demand. 

Olives,  oranges,  lemons  are  extensively  cultivated  and 
large  quantities  of  olive  oil  and  citrus  fruits  are  exported. 

The  leading  single  industry  of  Italy  is  the  production 
of  raw  silk,  large  quantities 'of  which  are  bought  annually 
by  European  and  American  silk  manufacturers. 

Italy  produces  a great  deal  of  wine,  inferior  in  quality 
to  the  French  wines,  but  forming  an  important  item  of 
export. 

The  country  is  not  rich  in  minerals;  some  infer- 
ior grade  coal  L(lignite)  is  mined,  but  most  of  the  fuel 


TRADE  AND  COMMERCE 


111 


must  be  imported.  Sulphur  is  found  in  Sicily,  and  is  ex- 
ported to  the  extent  of  approximately  $6,000,000  a year. 
Of  great  value  are  the  quarries  of  Italy,  yielding  some  of 
the  best  marble  for  artistic  purposes. 

Manufactures  have  been  undeveloped  because  of  the 
high  price  of  coal,  practically  all  of  which  must  be  imported; 
but  they  are  becoming  an  important  factor  in  the  economic 
life  of  the  nation.  Water  power  is  abundant  and  it  is 
being  rapidly  harnessed  to  serve  industry  and  commerce, 
manufactures  finding,  in  a densely  populated  country  like 
Italy,  adequate  labor  supply  and  good  local  markets.  Es- 
pecially marked  has  been  the  growth  of  textile  industries 
(silk,  cotton,  woolen,  linen),  and  the  production  of  chemi- 
cals. 

The  exports,  except  those  enumerated  above,  consist  of 
cotton  and  silk  tissues,  raw  hemp,  cheese  and  eggs,  fresh 
and  dried  fruits,  nuts  (figs,  almonds,  etc.),  rice,  straw  and 
straw  hats,  raw  and  sculptured  marble,  alabaster  and  coral. 

The  chief  imports  are  raw  cotton,  coal  and  coke,  boilers 
and  machinery,  wheat,  wrought  iron,  steel  and  other  metals, 
railway  carriages,  scientific  and  electrical  instruments,  tim- 
ber, silk  and  wool,  hides,  coffee,  etc. 

Most  of  the  imports  come  from  Great  Britain,  Germany, 
the  United  States,  France,  Austria-Hungary  and  Russia; 
the  exports  go  to  Switzerland,  Germany,  the  United  States, 
France,  Austria-Hungary,  Argentina. 

Spain  and  Portugal  occupy  the  Iberian  Peninsula. 
Spain  is  by  far  the  largest  of  the  two  kingdoms  both  in 
area  (190,050  square  miles)  and  in  population  (about  20,- 
000,000).  About  80  per  cent  of  its  soil  is  classified  as  pro- 
ductive, and  is  devoted  to  cereal  raising,  gardening,  fruit 
growing,  grape  and  olive  culture,  and  grazing. 

Spain  is  rich  in  minerals,  but  the  mineral  resources  are 
only  partially  developed,  the  most  important  minerals 
mined  being  iron,  copper,  coal,  lead,  zinc  and  mercury; 


112  SIMON  LITMAN 

Spain  supplies  about  one-half  of  the  world’s  output  of 
quicksilver. 

The  greater  part  of  Spain  is  tableland  surrounded  every- 
where but  in  the  west  by  mountains  and  possessing  some- 
what unfavorable  climatic  conditions;  high  temperature 
coupled  with  inadequate  rainfall  prevents  the  growth  of 
little  other  vegetation  except  herbs  and  shrubs.  However, 
artificial  irrigation  opens  possibilities  for  the  cultivation  of 
fruits  and  vegetables,  nuts  and  cereals,  and  many  parts 
of  Spain  are  thus  irrigated.  The  northwest  of  Spain,  with 
a greater  rainfall,  produces  corn,  while  some  of  the  more 
fertile  parts  of  the  plateau  yield  excellent  wine. 

The  only  valuable  product  of  Spanish  forests  is  cork. 

Spanish  wool  (short  staples)  is  considered  as  the  best 
in  the  world. 

Manfactures  of  more  than  local  significance  are  metal- 
lurgical works,  cotton  and  woolen  mills,  paper  mills  and 
glass-making  factories. 

The  exports  are  minerals,  glassware  and  pottery,  metal 
and  metal  manufactures,  foodstuffs,  etc.;  the  imports  con- 
sist of  cotton  and  its  manufactures,  machinery,  vehicles 
and  vessels. 

Portugal. — Over  43  per  cent  of  the  area  is  unproductive 
and  17J  per  cent  is  under  forests;  the  remaining  territory 
is  pasture  and  land  devoted  to  the  cultivation  of  cereals, 
pulses,  and  fruit. 

The  main  cereal  crops  of  the  country  are  corn  and  wheat. 
Wine  is  produced  both  for  domestic  consumption  and  for 
export;  the  same  is  true  of  olive  oil,  oranges  and  figs. 

There  is  considerable  mineral  wealth  in  Portugal,  but 
valuable  mines  remain  unworked  because  of  lack  of  fuel 
and  of  good  transportation  facilities. 

The  imports  consist  of  iron  and  steel  manufactures,  cot- 
ton and  woolen  goods,  coal,  codfish,  sugar,  hides  and  skins; 
the  exports  are  wine,  corn,  preserved  fish,  fruits,  copper 
ore,  etc. 


TRADE  AND  COMMERCE 


113 


The  Russian  Empire  occupies  one-seventh  of  the  land 
surface  of  the  globe  and  has  a population  of  over  150,000,- 
000.  The  entire  region  presents  a great  compact  land  mass, 
stretching  from  the  Baltic  Sea  and  the  frontiers  of  Ger- 
many and  Austria-Hungary  to  the  Pacific,  and  from  the 
Chinese  Empire,  Persia  and  the  Black  Sea  to  the  Arctic 
Ocean.  It  lies  within  the  temperate  and  frigid  zones. 

Russia  in  Europe  is  topographically  a great  plain,  the 
only  mountains  being  the  Caucasian  and  the  Crimean  in 
the  south  and  the  Ural  in  the  east 

The  northern  part  of  the  country  is  swampy,  frozen  for 
most  part  of  the  year,  with  no  vegetation  but  moss  and 
lichens;  farther  south  is  the  forest  belt  of  firs,  pines  and 
oaks,  yielding  valuable  material  for  building  purposes. 

South  of  this  belt  lies  the  monotonous  expanse  of 
Russian  steppes  and  fields  which,  although  open  to  the 
winds  sweeping  from  the  north  and  subject  occasionally 
to  severe  droughts,  are  capable  under  proper  system  of 
cultivation,  of  producing  abundantly  oats,  rye,  barley, 
wheat,  and  other  cereals. 

Notwithstanding  the  ignorance  and  the  lack  of  energy 
on  the  part  of  the  Russian  peasant,  even  at  present,  the 
black  earth  of  Russia  makes  the  country  one  of  the  lead- 
ing breadstuff  producers  in  the  world. 

Besides  cereals,  flax,  hemp,  potatoes,  sugar  beets  and 
tobacco  are  raised  in  different  parts  of  the  Empire. 

Russia  possesses  millions  of  horned  cattle,  sheep,  horses, 
goats  and  pigs,  yielding  large  quantities  of  milk,  butter  and 
cheese,  tallow,  wool,  hides  and  leather,  hair  and  bristles. 

Poultry  raising  furnishes  billions  of  eggs  both  for  home 
and  for  foreign  consumption;  about  55,000,000  eggs  are 
exported  annually. 

The  mineral  resources  of  Russia  are  vast  and  varied, 
and  the  mining  industry  is  steadily  increasing  in  impor- 
tance. The  chief  minerals  mined  are  gold,  platinum,  silver, 
coal,  copper,  iron  ore,  zinc,  lead  and  petroleum. 

B — IYe—8 


114 


SIMON  LITMAN 


Manufactures  have  become  sufficiently  prominent  an 
element  in  the  economic  life  of  the  country  to  supply  most 
of  the  home  demand  for  finished  goods;  undoubtedly  the 
demand  for  such  commodities  is  not  so  proportionate  to  the 
size  of  the  Russian  population,  if  a higher  standard  of  living 
should  prevail.  A deep  gulf  exists  between  a compara- 
tively insignificant  part  of  the  Russian  people  living  in  a 
few  large  cities  and  the  great,  inert,  widely  spread  mass 
of  the  moujiks  (peasants).  The  first  strive  for  material  as 
well  as  intellectual  progress,  they  live  the  full  life  of  civi- 
lized men,  while  the  second  exist  with  needs  and  wants  that 
do  not  pass  beyond  the  narrow  walls  of  their  huts  and  the 
patches  of  ground  they  cultivate. 

The  government  of  Russia  is  paternal;  it  owns  and  oper- 
ates two-thirds  of  the  railway  system,  most  of  the  tele- 
graph and  telephone  lines,  valuable  mines;  it  buys  all  the 
alcohol  required  for  national  consumption  and  sells  the 
liquor  consumed  by  the  people.  One-third  of  all  the  land 
and  two-thirds  of  the  forest  are  still  under  its  immediate 
control 

The  leading  manufactures  of  national  importance  are 
cotton,  linen  and  woolen  fabrics,  the  products  of  sugar  re- 
fineries, of  breweries  and  distilleries;  mills  are  centered  in 
Poland,  in  and  around  Moscow  and  in  a few  other  industrial 
districts  of  Russia.  Of  the  fisheries  the  most  important  and 
valuable  are  those  of  the  rivers  and  of  the  Caspian  and 
Black  seas. 

The  imports  of  Russia  consist  of  cotton,  wool,  hides, 
leather,  chemicals,  colors,  coal,  coke,  unmanufactured  met- 
als, tea,  coffee,  alcoholic  beverages,  fish,  fruits  and  nuts, 
machinery,  metal  goods  and  textiles. 

The  exports  enumerated  in  the  order  of  their  value  are: 
cereals  and  flour,  timber  and  wooden  goods,  flax  and  hemp, 
eggs,  dairy  produce,  petroleum,  furs  and  feathers,  sugar, 
fowls  and  game,  bristle  and  hair,  wool;  some  manufactures 


TRADE  AND  COMMERCE 


115 


are  exported,  principally  to  Asia,  but  they  play  a small 
role  in  Russia’s  export  trade. 

The  exports  to  the  United  States  in  1907  were  $7,727,- 
000,  as  compared  with  $290,000,000  to  Germany  or  $228,- 
000,000  to  Great  Britain.  Germany  leads  in  imports  (in 
1907 — $311,000,000),  followed  at  a great  distance  by  the 
United  Kingdom  ($114,000,000)  and  the  United  States 
($53,000,000). 

The  Balkan  countries  occupy  the  Balkan  Peninsula  and 
some  of  its  contiguous  territory.  They  consist  of  Rou- 
mania,  Servia,  Bulgaria,  Montenegro,  European  Turkey 
and  Greece.  In  all  of  them  agricultural  and  pastoral  pur- 
suits predominate;  mining,  although  the  mountainous  ter- 
ritory is  rich  in  minerals,  is  little  pursued,  and  manufac- 
tures, barring  the  making  of  carpets  in  Turkey,  are  of  a 
purely  local  character. 

Roumania  raises  large  crops  of  corn  and  wheat,  the 
first  for  home  consumption,  the  second  for  export;  barley, 
rye,  oats,  hemp  and  colja  are  some  of  the  other  crops.  The 
chief  minerals  found  are  petroleum  and  salt.  The  exports 
consist  of  cereals,  animal  products,  wood  and  mineral  fuel, 
imports  of  textiles,  metal  wrare,  chemicals  and  drugs,  etc. 

Bulgaria.  The  soil  of  Bulgaria  south  of  the  Balkan 
Mountains  is  fertile,  the  climate  warm,  and  such  products 
as  grapes,  cotton,  tobacco,  rice,  roses  (attar  of  roses  ex- 
ported) are  cultivated;  the  northern  portions  of  the  king- 
dom produce  wheat  and  present  excellent  pasture  land  for 
large  herds  of  sheep,  cattle  and  horses.  Agricultural  meth- 
ods are  primitive. 

Servia  resembles  Bulgaria  in  its  topography,  climate, 
products  and  the  occupations  of  its  people.  It  exports 
prunes  and  preserved  plums,  corn,  wheat,  barley,  meat, 
hides,  eggs;  it  imports  textiles,  iron  and  steel,  machinery, 
sugar  and  salt. 

European  Turkey  is  but  a fraction  of  the  Great  Otto- 
man Empire.  Its  industrial  development  has  been  retard- 


116 


SIMON  LITMAN 


ed  because  of  political  conditions,  and  it  is  expected  that 
the  overthrow  of  absolutism  and  the  rule  of  the  Young 
Turks  will  have  a stimulating  effect  upon  industries  and 
commerce.  Turkey  with  its  tributary  states  has  an  area 
of  1,565,000  square  miles  and  a population  of  35,000,000; 
it  includes  Asia  Minor,  Armenia  and  Kurdistan,  Mesopo- 
tamia, Syria,  extensive  coast  strips  in  Arabia,  Tripoli  and 
Egypt.  The  soil  of  the  Turkish  possessions  is  fertile  and 
the  climatic  conditions  are  good.  Tobacco,  cereals  of  all 
kinds,  cotton,  grapes,  nuts,  almonds,  olives,  all  varieties  of 
fruit  grow  abundantly.  Coffee  and  silk  plantations  are 
being  extended.  The  large  forests  contain  firs,  pines,  oaks 
and  cedars.  Of  the  minerals  the  most  important  are  copper, 
coal,  zinc  and  lead. 

Greece,  the  most  southern  of  the  Balkan  countries, 
raises  subtropical  products,  figs,  olives,  wine  and  currant 
grapes,  silks,  honey  and  tobacco.  Currants  are  the  chief 
article  of  export.  1 

North  America. 

Alaska,  a territory  of  the  United  States,  occupies  the 
northwestern  part  of  North  America.  The  area  of  the 
territory  is  about  590,000  square  miles,  and  the  population 
approximates  64,000.  Alaska  has  considerable  timber  re- 
sources, mostly  spruce,  hemlock  and  cedar;  but  the  lumber- 
ing industry  is  not  developed.  Mining,  and  seal  and  sal- 
mon fisheries  are  the  leading  occupations  of  the  people. 
The  output  of  gold  reaches  $20,000,000  a year;  copper 
is  the  next  important  mineral  extracted;  there  are  also 
deposits  of  tin  ore,  lead,  coal,  petroleum,  gypsum,  and 
marble,  some  of  which  are  worked.  The  annual  catch  of 
salmon  is  valued  at  $9,000,000. 

The  southern  parts  of  the  territory,  especially  near  the 
coast,  are  not  unsuitable  for  agricultural  pursuits;  the  cli- 
mate there  is  more  equable  than  on  the  eastern  coast  of 
the  continent. 


TRADE  AND  COMMERCE 


117 


Canada  is  the  most  important  of  Great  Britain’s  colo- 
nies of  settlement.  In  territory  it  is  somewhat  larger  than 
the  United  States,  but  a considerable  part  of  the  country, 
being  too  far  north,  lies  in  a zone  unfit  for  agricultural  pur- 
suits. Vast  tracts  of  land  in  the  more  southern  regions 
have  favorable  climate  and  fertile  soil;  they  are  well  adapt- 
ed to  the  growing  of  temperate  region  cereals : wheat,  oats 
and  barley,  as  well  as  for  stock  raising  and  dairying.  The 
eastern  (Atlantic  coast)  and  western  (Pacific  coast)  parts 
of  Canada  have  copious  rains,  while  the  climate  of  the 
Great  Central  Plain  is  continental,  with  wide  ranges  of 
temperature  and  comparatively  little  rainfall. 

About  three-fourths  of  the  population  of  Canada  are 
farmers,  agriculture  being  carried  on  in  all  the  Canadian 
provinces.  Cereal  raising  is  particularly  prominent  in  Sas- 
katchewan, Manitoba,  Ontario  and  Quebec;  these  are  rap- 
idly becoming  great  wheat-producing  regions  of  the  world; 
in  the  interior  west  are  the  live  stock  ranches  with  their 
herds  of  cattle  and  sheep;  the  chief  occupations  in  British 
Columbia  are  mining,  cereal  and  fruit  raising  and  fishing, 
while  in  the  east  (Quebec,  New  Brunswick  and  Nova  Sco- 
tia) diversified  farming  and  dairying  are  carried  on,  large 
quantities  of  butter  and  cheese  of  excellent  quality  being 
produced.  The  latter  forms  an  important  item  of  Canadi- 
an export. 

The  forest  belt  of  Canada  extends  in  an  unbroken  line 
from  the  Atlantic  to  the  Pacific  and  gives  the  coun- 
try the  largest  forest  area  possessed  by  any  nation  in  the 
world;  spruce,  pine,  balsam  fir,  maple,  hemlock  are  the 
chief  varieties,  to  which  may  be  added  such  hardwoods  as 
birches  and  aspens. 

Besides  yielding  timber  and  other  tree  products,  the  for- 
ests of  Canada  have  a commercial  value  as  the  hunting 
ground  of  the  trapper,  Canada  being  one  of  the  main  pro- 
ducers of  furs. 


118 


SIMON  LITMAN 


The  principal  minerals  mined  are  coal,  copper,  nickel, 
silver  and  gold,  lead,  asbestos  and  petroleum,  the  first  five 
being  by  far  the  most  important. 

Fisheries  are  a valuable  economic  asset  of  Canada,  sal- 
mon, cod,  herrings,  lobsters  and  mackerel  being  the  prin- 
cipal catches. 

There  are  about  16,000  manufacturing  establishments  in 
Canada  situated  mostly  in  Ontario  and  Quebec;  in  1905  the 
value  of  the  products  reached  $718,000,000. 

The  exports  of  Canada  consist  of  wood  and  wood  pulp, 
wheat  and  wheat  flour,  cheese  and  butter,  bacon,  silver, 
gold,  copper  and  coal,  cattle  and  sheep,  various  fish,  fruits, 
hides  and  skins,  furs  and  leather;  the  imports  are  iron  and 
steel  manufactures,  coal  and  coke,  textiles,  provisions,  tea, 
spirits,  oils,  glass,  etc. 

The  bulk  of  Canadian  imports  is  furnished  by  the 
United  States,  this  notwithstanding  a preferential  tariff  in 
favor  of  British  products.  In  1906  the  value  of  imports 
from  the  United  States  was  $176,000,000,  from  the  United 
Kingdom  $69,000,000;  in  the  value  of  exports  conditions 
are  reversed;  Great  Britain  having  taken  in  1906  $133,000,- 
000  of  Canadian  products,  the  United  States  $98,000,000. 

Newfoundland  is  politically  a British  colony  distinct 
from  the  Dominion  of  Canada.  Fishing  is  the  chief  indus- 
try and  dried  cod  is  the  principal  item  of  export,  other  arti- 
cles exported  being  seal  oil,  canned  lobsters,  iron  ore,  and 
copper.  Fine  pine  forests  exist  in  the  northern  part  of  the 
country,  and  large  saw  mills  have  been  established. 

The  imports  include  textiles,  flour,  salt  pork,  coal,  hard- 
ware and  machinery. 

The  West  Indies. — Of  many  West  Indian  Islands  only 
two,  Cuba  and  Haiti,  the  latter  divided  between  two  states, 
are  independent;  all  the  other  islands  are  colonies  of  Euro- 
pean nations:  Great  Britain,  France,  Denmark  and  Nether- 
lands. 


TRADE  AND  COMMERCE 


119 


The  islands,  extending  between  the  Atlantic  Ocean  on 
one  side  and  the  Caribbean  Sea  and  the  Gulf  of  Mexico  on 
the  other,  vary  in  size  from  Cuba,  which  has  an  area  of 
44,000  square  miles,  to  tiny  rocks  just  rising  above  the  sea. 
The  climate  is  tropical,  most  of  the  land  fertile. 

Cuba,  the  largest  and  richest  of  the  West  Indies,  is  well 
adapted  to  the  cultivation  of  all  tropical  fruits  and  vegeta- 
bles ; its  staples  are  sugar  cane  and  tobacco,  although  cacao, 
coffee,  corn,  potatoes,  bananas,  pineapples,  oranges  are  also 
grown. 

The  forests  of  Cuba  contain  valuable  cabinet  woods, 
such  as  mahogany,  cedar,  dyewoods,  fibers,  gums,  resins 
and  oils.  The  mineral  resources  include  iron  ore,  copper, 
manganese,  asphaltum  and  salt. 

Of  the  cultivated  area  more  than  half  is  under  sugar, 
and  about  one-tenth  under  tobacco.  These  two  products 
form  the  bulk  of  the  Cuban  exports,  the  other  items  being 
minerals,  fruits  and  wood.  The  imports  consist  of  manu- 
factures: textiles  and  others,  iron  and  steel  goods,  provi- 
sions. 

The  United  States  is  the  principal  market  for  Cuban  ex- 
ports and  it  supplies  about  one-half  of  the  island’s  imports, 
other  importing  countries  being  Great  Britain,  Spain,  Ger- 
many and  France. 

Porto  Rico,  a colony  of  the  United  States,  is  separated 
from  Cuba  by  the  island  of  Haiti.  It  produces  large  quan- 
tities of  sugar  and  coffee  for  export,  its  other  products  be- 
ing those  of  diversified  farming. 

The  forests  of  Porto  Rico  contain  cedar,  ebony,  sandal- 
wood and  other  building  material  as  well  as  dyes  and  medic- 
inal plants. 

The  British  West  Indies  include  the  Bahamas,  Jamaica, 
the  Bermudas. 

Besides  fruit  growing,  collecting  of  sponges  is  one  of 
the  resources  of  the  Bahamas,  while  Jamaica  produces  sug- 


120 


SIMON  LITMAN 


ar,  rum,  coffee  and  ginger.  The  Bermudas  manufacture 
and  ship  millions  of  bags  to  the  United  States. 

The  Dominican  Republic  occupies  the  eastern  and  larger 
part  of  the  island  of  Santo  Domingo  or  Haiti;  the  Republic 
of  Haiti  occupies  the  western  part.  The  island,  the  second 
largest  of  the  Antilles,  lies  between  Cuba  and  Porto  Rico, 
and,  because  of  numerous  mountain  ranges,  plateaus  and 
valleys,  it  has  a variety  of  climate  and  products,  nearly  all 
of  the  fruits  of  the  tropics  and  many  of  the  temperate  zone 
growing  there  successfully.  Agriculture  is  the  leading  oc- 
cupation in  both  republics  and  the  chief  exports  are  cacao, 
sugar,  coffee  and  tobacco.  Imports  consist  of  cotton,  iron 
and  steel,  wheat  flour,  rice,  provisions,  oils,  vegetable  fibers. 

The  foreign  trade  is  carried  on  mostly  with  the  United 
States,  Germany  and  France. ' 

Mexico  is  the  third  largest  of  the  American  republics 
as  regards  population  (13,600,000)  and  the  fourth  largest 
as  regards  territory  (767,000  square  miles). 

The  situation  of  Mexico,  partly  in  the  temperate  and 
partly  in  the  tropical  zone  and  the  varying  altitudes  of  its 
valleys,  plateaus  and  mountain  slopes,  give  it  a diversity  of 
climate  and  products. 

Mining  is  the  leading  industry,  Mexico  having  abundant 
deposits  of  silver,  gold,  copper,  lead  and  other  metals.  It 
is  estimated  that  the  value  of  mining  properties  held  by 
foreign  companies  and  individuals  reaches  the  amount  of 
$350,000,000. 

Corn  is  the  chief  cereal  crop;  other  products  of  the  soil 
include  cotton,  henequen,  wheat,  sugar  and  molasses,  coffee, 
beans  and  woods. 

The  extensive  forests  of  Mexico  contain  timber  suitable 
for  building,  and  for  furniture  making,  dyewoods,  medicinal 
plants,  rubber  trees,  etc. 

The  bulk  of  the  country’s  exports  consists  of  raw  mate- 
rials, minerals,  henequen,  coffee,  cacao,  vanilla,  tobacco  and 


TRADE  AND  COMMERCE 


121 


sugar.  Imports  are  machinery  and  apparatus,  provisions, 
textiles,  animal  substances,  chemical  products,  etc. 

The  United  States  is  the  best  market  for  Mexican  prod- 
ucts and  is,  also,  at  the  head  of  its  list  of  importers.  In 
1909  the  value  of  exports  to  the  United  States  was  $47,712,- 
000,  and  the  value  of  imports  from  there  $49,793,000. 

Central  American  Republics. 

Guatemala,  the  northmost  of  the  Central  American  re- 
publics, lies,  barring  a small  strip  along  the  coast,  at  an 
altitude  from  4,000  to  11,500  feet.  The  mountain  range 
which  traverses  the  territory  forms  seyeral  fertile  valleys, 
well  adapted  for  the  growing  of  both  subtropical  and  tem- 
perate region  products.  Coffee  is  the  chief  article  of  pro- 
duction and  export,  other  commodities  exported  being 
hides,  bananas,  sugar,  rubber,  woods  and  chicle,  used  in  the 
making  of  chewing  gum.  Imports  consist  of  textiles,  iron 
and  steel  manufactures,  electrical  material  and  apparatus, 
provisions  and  beverages. 

Germany  is  the  best  customer  for  the  Guatemalan  prod- 
ucts, while  the  United  States  occupies  the  first  place  as  an 
importer. 

Salvador  is  the  smallest  and  the  most  densely  populated 
of  all  the  American  republics.  As  in  Guatemala,  coffee  is 
the  leading  article  of  production  and  of  export,  with  miner- 
als as  second.  Other  exports  are  cacao,  rubber,  sugar,  in- 
digo, tobacco,  “ Peruvian  balsam”  and  bananas.  The  prin- 
cipal imports  are  cotton,  silk  and  woolen  manufactures, 
hardware,  flour,  etc.  The  forests  of  Salvador  contain  cabi- 
net and  hardwoods,  mahogany,  cedar,  walnut,  dyewoods, 
gums  and  resin  but  these  resources  are  but  little  exploited. 

The  United  States  takes  the  largest  amount  of  Salva- 
dor’s exports,  though  it  is  exceeded  by  Great  Britain  in  the 
value  of  imports. 

Nicaragua  has  the  same  characteristics  of  topography 
and  climate  as  the  other  Central  American  republics.  A 


122 


SIMON  LITMAN 


mountain  range  crosses  its  territory  reaching  a consider- 
able height  and  giving  it  varying  altitudes;  a diversity  of 
climates  and  products  is  the  result. 

Coffee,  bananas,  gold,  rubber,  mahogany,  cedar,  cattle, 
hides  and  cocoanuts  are  amongst  the  chief  exports. 

The  mountains  contain  many  minerals  and  precious 
stones;  the  forests  consist  of  various  species  of  trees  fur- 
nishing oils  and  extracts  used  for  medicinal  purposes.  The 
United  States  leads  both  as  an  importer  into  and  an  ex- 
porter from  the  republic. 

Honduras  with  fertile  valleys,  magnificent  grazing  land 
for  cattle  and  mountains  possessing  large  mineral  resourc- 
es has  not  been  as  yet  adequately  developed. 

The  exports  of  the  country  consist  of  bananas,  coffee, 
cocoanuts,  mahogany,  rubber,  sarsaparilla,  silver,  hides  and 
cattle;  the  imports  include  textiles,  iron  and  steel  products, 
machinery  and  foodstuffs.  The  United  States  has  the  bulk 
of  the  Honduras  foreign  trade. 

Costa  Rica  grows  coffee,  tobacco,  sugar,  rice,  cacao,  in- 
digo. Its  forests  yield  rubber,  cocoanuts  and  bananas.  The 
latter  form  the  chief  item  of  Costa  Rico’s  exports,  followed 
by  coffee,  gold  and  silver;  some  cacao,  woods,  hides,  skins 
and  tortoise  shells  are  also  exported.  Imports  are  fabrics, 
flour,  live  stock,  machinery,, 

The  United  States  is  the  leading  importer  into  and  ex- 
porter from  Costa  Rica. 

Panama.e==The  Isthmus  of  Panama,  which  connects  Cen- 
tral and  South  America,  comprises  the  Canal  Zone  and  the 
recently  formed  Republic  of  Panama.  The  latter  has  fer- 
tile soil  and  climatic  conditions  favorable  to  the  growth 
of  tropical  products.  The  mountain  slopes  are  covered  with 
dense  forests  of  cabinet,  building  and  dye  woods,  and  the 
plains  offer  excellent  pasture  ground.  Deposits  of  coal, 
copper  and  gold  are  known  to  exist,  but  they  are  not  mined. 

Exports  consist  of  bananas,  hides,  rubber,  cocoanuts,  in- 
digo, cacao,  pearls,  mahogany. 


TRADE  AND  COMMERCE 


123 


South  America. 

Argentina  has  an  area  of  1,136,000  square  miles  and  an 
estimated  population  of  6,400,000,  of  which  about  1,150,000 
live  in  the  capital  of  the  country — Buenos  Aires. 

About  one-third  of  Argentina  may  be  used  for  agricul- 
tural or  pastoral  industries,  the  remaining  two-thirds  being 
mountain,  lake,  river  or  arid  regions.  In  1908  of  the  avail- 
able area  only  one-seventh  (39,500,000  “acres)  was  under  cul- 
tivation. Wheat,  corn,  linseed,  flax  and  oats  are  the  leading 
crops  and  they  figure  prominently  in  the  export  trade  of 
the  country. 

Argentina  has  large  quantities  of  cattle  and  sheep;  stock 
raising  is  carried  on  under  careful  governmental  regula- 
tion, the  most  scientific  methods  of  selection  and  breeding 
being  applied;  the  products  of  the  slaughtering  and  freez- 
ing establishments  are  shipped  across  the  Atlantic  to  Great 
Britain  and  other  countries. 

The  republic  presents  a variety  of  climate  and  products, 
ranging  from  tropical  in  the  north  to  arctic  in  the  south; 
however,  the  largest  part  of  its  territory  lies  within  the 
temperate  zone,  the  latter  fact  explaining  to  some  degree 
the  economic  conditions  in  Argentina  and  its  present  rapid 
industrial  development. 

Upward  of  $1,200,000,000  of  British*  capital  is  invested 
in  the  country,  particularly  in  railways  and  government 
bonds. 

Sugar,  tobacco  and  grapes  are  grown,  but  these  indus- 
tries are  yet  in  their  infancy.  Mineral  resources  are  not 
exploited  because  of  lack  of  available  capital,  poor  means 
of  transportation  and  high  cost  of  fuel. 

The  chief  imports  of  Argentina  are  textiles,  iron  and 
other  metals,  cars  and  carriages,  building  materials,  pot- 
tery, foodstuffs  and  beverages.  Great  Britain  occupies  a 
commanding  position  both  as  a purchaser  from  and  a seller 
to  Argentina,  about  one-half  of  the  foreign  trade  of  the  re- 


124 


SIMON  LITMAN 


public  being  with  the  United  Kingdom.  In  1908  Argen- 
tina’s commerce  amounted  to  $639,000,000  of  which  $273,- 
000,000  were  imports  and  $366,000,000  exports;  the  United 
States  furnished  about  one-seventh  of  the  first  and  took 
about  one-thirtieth  of  the  latter. 

In  Uruguay  most  of  the  land  is  used  for  pastoral  pur- 
poses, cattle  breeding  (7,000,000  heads)  and  sheep  raising 
(18,000,000  heads)  being  the  chief  occupation  of  the  people. 

Agricultural  industries  are  not  very  important  but  the 
area  under  cultivation  is  being  gradually  extended.  The 
leading  crops  are  wheat  and  linseed;  some  wine  is  produced, 
also  tobacco  and  olives. 

The  exports  consist  mainly  of  animal  products,  while 
the  imports  include  raw  and  manufactured  materials,  tex- 
tiles, foodstuffs,  beverages,  etc.  The  imports  from  the 
United  States  are  smaller  than  those  from  Great  Britain, 
Germany  or  France.  In  1909  the  total  of  our  trade  with 
Uruguay  was  about  $7,000,000  divided  almost  equally  be- 
tween imports  and  exports. 

Paraguay. — Stock  raising,  because  of  abundance  of  good 
grazing  land  is  carried  on  extensively;  hides,  jerked  beef 
and  other  animal  products  are  exported.  Yerba  mate,  or 
Paraguay  tea,  tobacco  and  oranges  are  also  articles  of  ex- 
port. Immense  forests  furnish  valuable  timber,  both  hard 
and  soft,  some  of  which  is  shipped  to  the  neighboring  coun- 
tries and  to  Europe. 

The  chief  imports  are  textiles,  provisions,  hardware, 
spirits  and  haberdashery. 

Trading  relations  with  the  United  States  are  insignifi- 
cant, averaging  $100,000  a year. 

Brazil,  with  a territory  about  equal  to  that  of  the  Unit- 
ed States  and  a population  approximating  20,000,000,  is  a 
pre-eminently  agricultural  country. 

Coffee  is  by  far  the  principal  crop,  furnishing  the  chief 
article  of  export.  In  1908  the  enormous  quantity  of  1,116,- 
000,000  pounds  was  exported,  valued  at  $115,000,000.  Oth- 


TRADE  AND  COMMERCE 


125 


er  crops  include  cacao,  mate,  tobacco,  sugar  cane,  cotton,  all 
of  which  contribute  to  the  foreign  trade  of  the  country. 
Cereals,  pulses,  fruits  and  vegetables  are  grown  for  home 
consumption. 

The  wealth  of  the  Amazon  forests  has  been  hardly 
touched,  the  only  areas  exploited  to  any  extent  being  those 
under  rubber  trees;  rubber  is  shipped  to  all  parts  of  the 
world,  the  value  of  the  rubber  export  being  about  one-half 
of  that  of  coffee. 

Pastoral  industries,  notwithstanding  an  abundance  of 
grazing  land,  are  in  an  undeveloped  condition;  however, 
live  stock  is  being  introduced  and  native  breeds  are  being 
improved  by  crossing  them  with  foreign  animals.  As  yet 
Brazil  imports  butter  and  cheese,  but  this  will  hardly 
last  much  longer. 

Very  little  fuel  is  mined,  but  because  of  the  wider  appli- 
cation of  electricity  to  manufacturing  a number  of  fac- 
tories have  been  recently  established  which  produce  many 
commodities  formerly  imported.  They  include  the  making 
of  cottons,  shoes,  hats,  clothing,  candles,  soap,  furniture, 
beer,  etc. 

The  chief  imports  of  Brazil  are  wheat  and  wheat  flour, 
coal,  cotton,  fabrics,  codfish  and  wines. 

Brazil’s  best  customer  is  the  United  States  which  in 
1909  took  $98,000,000  worth  of  its  exports;  American  ex- 
ports to  Brazil  fall  far  below  those  of  Great  Britain  or 
Germany;  in  1909  they  were  $17,527,000. 

The  Guianas  (British,  Dutch  and  French)  are  of  little 
value  commercially.  The  most  important  of  the  three  is 
British  Guiana  with  rich  gold  deposits  and  extensive  sugar 
plantations  and  factories.  Besides  gold  and  sugar,  its  ex- 
ports consist  of  diamonds;  the  imports  are  provisions,  tex- 
tiles, machinery,  hardware.  Trade  is  carried  on  mostly 
with  Great  Britain;  the  United  States  ships  to  British  Gui- 
ana kerosene,  fish  and  breadstuffs. 


126 


SIMON  LITMAN 


The  products  of  French  Guiana  are  cocoa,  phosphates, 
various  woods,  rosewood  essence  and  hides.  The  colony  is 
a penal  settlement  for  French  convicts  sentenced  to  hard 
labor. 

Dutch  Guiana  produces  sugar,  rum  and  molasses,  cacao, 
bananas,  gold,  coffee,  rice. 

The  imports  of  the  French  and  Dutch  Guianas  are  simi- 
lar to  those  of  the  British. 

Venezuela. — The  surface  of  Venezuela  is  naturally  di- 
vided into  three  zones : the  agricultural,  the  pastoral  and  the 
forest.  Cereals,  coffee,  cacao,  sugar  cane  grow  in  the  first 
zone;  stock  raising  is  carried  on  in  the  second,  and  in  the 
third,  rubber,  tonka  beans  and  other  tropical  products  are 
grown  by  the  inhabitants. 

Venezuela  is  rich  in  metallic  and  non-metallic  minerals; 
especially  abundant  are  deposits  of  copper,  silver,  iron  and 
gold. 

Manufacturing  industries  are  few,  and  therefore  finish- 
ed commodities  are  the  chief  item  of  import. 

The  United  States  and  France  have  the  largest  share 
of  the  Venezuelan  exports;  Great  Britain  excels  both 
countries  in  the  value  of  imports. 

Colombia  is  rich  in  minerals  and  mining  is  carried  on 
extensively,  gold  and  silver  mines  being  the  most  impor- 
tant; other  minerals  found  are  copper,  platinum,  lead,  mer- 
cury, emeralds,  etc.  Several  departments  (provinces)  have 
rich  deposits  of  coal,  petroleum,  as  well  as  of  iron,  limestone 
and  fireclay.  The  area  under  cultivation  is  small,  the  coun- 
try’s development  being  retarded  by  poor  roads  and  in- 
adequate transportation  facilities.  Tobacco  and  particu- 
larly coffee  plantations  furnish  commodities  for  export. 
The  rubber  tree  grows  wild,  and  very  little  is  being  done 
with  its  product;  dye  and  cedar  woods  are  also  abundant, 
but  unexploited. 

Colombia  has  numerous  cattle,  goats,  sheep  and  swine, 
and  exports  large  quantities  of  hides;  other  exports  besides 


TRADE  AND  COMMERCE 


127 


coffee  and  tobacco  are  ivory  nuts,  minerals,  cotton  and  cot- 
ton seed,  and  asphalt. 

Valuable  pearl  fisheries  are  on  the  coast. 

The  chief  imports  are  flour,  lard,  petroleum  and  cotton 
goods  from  the  United  States,  sugar  and  potatoes  from 
Germany,  textiles  from  Great  Britain.  In  1909  the  United 
States  imported  from  Colombia  about  $7,000,000  worth, 
while  its  exports  were  $3,679,000. 

Bolivia. — The  greatest  part  of  the  population  of  about 
2,000,000  consists  of  Indians  (57  per  cent),  and  of  mixed 
races  (27  per  cent).  More  than  one-fourth  of  the  people 
are  engaged  in  agriculture  which  is,  however,  in  a back- 
ward condition.  Wheat,  corn,  barley,  potatoes  are  raised 
for  domestic  consumption;  coffee,  coca,  quinces  for  export 
(mostly  to  Chile  and  Argentina). 

The  mineral  wealth  of  Bolivia  is  widely  distributed  and 
abundant:  it  includes  tin,  silver,  copper,  lead,  zinc,  anti- 
mony, bismuth,  the  first  being  the  most  important  in  the 
list  of  Bolivian  exports.  In  1908  it  was  shipped  abroad  to 
the  value  of  $13,800,000  out  of  total  exports  amounting  to 
$17,514,000.  In  the  same  year  silver  and  shipments  totalled 
$2,802,000. 

Rubber  is  being  produced  and  exported,  but  the  industry 
is  not  in  a prosperous  condition. 

Cattle,  sheep  and  llamas  graze  in  large  numbers  on  fine 
pastures,  but  very  few  animal  products  are  obtained. 

Chief  imports  are  textiles  and  heavy  made  cloths,  pro- 
visions, wines  and  spirits,  hardware,  Great  Britain  furnish- 
ing the  bulk  of  these  goods.  The  share  of  the  United  States 
in  the  foreign  trade  of  Bolivia  is  small.  In  1909  the  imports 
from  the  United  States  equalled  $138,000;  the  exports  were 
valued  at  $793,000. 

Ecuador,  so  called  because  of  its  situation  under  the 
equator,  has  an  area  of  420,000  square  miles  and  a popula- 
tion of  only  1,500,000,  most  of  which  is  of  Indian  or  of  mixed 

blood. 


128 


SIMON  LITMAN 


Ecuador  may  be  divided  into  three  zones,  dependent  up- 
on the  altitude  of  the  place.  The  lowlands  are  hot,  as  hot 
as  the  equatorial  sun  can  make  them,  while  the  peaks  of  the 
Andes  Mountains,  towering  from  19,000  to  over  20,000  feet 
above  them  are  covered  with  perennial  snow;  between  these 
two  extremes  lie  the  plateaus  of  various  elevations  (from 
6,000  to  over  9,000  feet),  possessing  a temperate  climate, 
adapted  to  the  cultivation  of  wheat  and  other  cereals. 

Agriculture  is  the  chief  occupation  of  the  people,  cacao 
being  the  leading  commercial  product;  in  1908  it  was  ship- 
ped abroad  to  the  extent  of  64,000,000  pounds,  valued  at 
$6,400,000,  furnishing  more  than  half  of  the  total  export 
trade.  Other  important  items  of  export  are  ivory  nuts, 
coffee,  rubber  and  “ Panama”  hats;  the  latter  are  made 
almost  exclusively  in  Ecuador,  they  range  in  price  from 
$1  to  $125  and  may  be  found  for  sale  in  every  part  of  the 
world. 

The  mineral  resources  of  the  country  have  been  only 
slightly  exploited  because  of  lack  of  capital  and  of  trans- 
portation facilities. 

Imports  consist  of  textiles,  food  products,  coal,  iron, 
hardware  and  machinery,  liquors,  clothing,  etc. 

In  1909  exports  to  the  United  States  were  $2,730,000, 
imports  from  there  $1,850,000.  France  excels  the  United 
States  in  exports  from  Ecuador,  Great  Britain  in  imports 
into  that  country. 

Peru,  with  a population  of  about  4,500,000,  over  55  per 
cent  of  whom  are  Indian,  25  per  cent  mestizos,  2 per  cent  ne- 
groes and  2 per  cent  Chinese,  the  rest  being  white,  covers 
over  670,000  square  miles  and  may  be  divided  into  three 
distinct  zones:  (1)  the  dry,  extending  along  the  coast  to 
the  foot  of  the  Andes  Mountains,  in  which  practically  noth- 
ing can  be  cultivated  without  irrigation;  (2)  the  region  be- 
tween the  mountain  ranges,  consisting  of  extremely  fertile 
plateaus,  on  which  are  bred  cattle,  alpacas,  sheep  and  llam- 
as; (3)  the  eastern  slope  of  mountains  covered  with  vast, 


TRADE  AND  COMMERCE  129 

luxuriant  forests  consisting  of  many  useful  woods  and  me- 
dicinal plants. 

Coffee,  sugar  cane,  cotton,  cacao  and  rice  are  the  prin- 
cipal agricultural  products,  each  contributing  more  or  less 
to  the  export  trade  of  the  country;  other  products  grown  are 
tobacco,  wine  grapes,  olives,  ramie  and  corn. 

The  mineral  resources  are  vast  and  varied  and  they  are 
at  present  one  of  the  greatest  items  of  national  wealth,  the 
mines  producing  gold,  silver,  copper,  coal  and  iron. 

India  rubber  and  chincona  bark  are  the  main  forest 
products..  An  important  branch  of  industry  is  the  exploita- 
tion of  the  guano  deposits  of  the  republic;  in  1907  about 
80,000  tons  of  this  product  were  exported.  An  excellent 
grade  of  wool,  sought  by  foreign  markets,  is  furnished  by 
the  alpaca,  a native  animal  of  Peru. 

The  imports  include  minerals,  metals  and  machinery, 
wheat,  timber. 

Great  Britain  occupies  a leading  position  in  the  for- 
eign trade  of  the  country,  followed  by  the  United  States, 
Germany  and  Prance. 

Chile  extends  over  more  than  thirty-eight  degrees  of 
latitude,  occupying  a narrow  strip  of  land  of  an  average 
width  of  only  90  miles.  It  lies  between  the  Andean  Moun- 
tains and  the  Pacific  Ocean.  The  northern  part  of  the 
country  consists  of  vast  nitrate  beds  and  other  more  or  less 
desert  land  containing  many  mineral  resources  and  yield- 
ing copper,  gold,  silver,  iron.  The  central  division  of  the 
republic,  because  of  its  climatic  conditions,  is  pre-eminent- 
ly agricultural,  while  extensive  forests  furnishing  various 
kinds  of  cabinet  and  other  woods  abound  in  the  south. 

Mining,  due  to  the  extensive  deposits  of  nitrate  of  soda, 
occupies  the  first  place  amongst  the  industries  of  the  coun- 
try, over  2,000,000  tons  of  the  product  being  exported  annu- 
ally. In  the  exports  of  1908,  mineral  products  were  repre- 
sented by  over  $99,000,000  while  vegetable  products  were 


D— IV— 9 


130 


SIMON  LITMAN 


less  than  $9,000,000  and  animal  products  equalled  but  $6,- 

091.000. 

In  agriculture,  primitive  methods  are  mostly  used, 
though  modern  machinery  is  being  imported  in  increasing 
quantities.  Wheat  and  barley  are  the  chief  cereals  culti- 
vated; other  products  include  excellent  wine,  fruits  and 
vegetables.  The  soil  is  very  fertile  in  many  parts  of  Chile, 
and  the  opening  of  the  country  through  irrigation  and  bet- 
ter transportation  facilities,  which  now  are  under  way,  will 
undoubtedly  lead  to  the  development  of  many  agricultural 
pursuits,  suited  to  the  conditions  of  the  county. 

Manufacturing  industries  are  mostly  of  a local  charac- 
ter; a few,  however,  have  achieved  national  importance;  the 
manufactures  consist  of  chemical  and  metallurgical  works, 
textile  mills,  leather  and  shoe  factories,  breweries  and  wi- 
neries, etc. 

Chile  imports  coal,  machinery  and  tools,  cotton  fabrics, 
oils  and  colors,  provisions,  paper,  beverages.  Great  Britain 
has  the  largest  share  of  Chile ’s  foreign  trade,  Germany  be- 
ing next,  and  the  United  States  occupying  the  third  place. 
In  1909  the  exports  from  Chile  to  the  United  States  were 
$13,712,000  (as  compared  with  $18,287,000  in  1907),  and 
the  imports  from  the  United  States  equalled  $5,466,000 
($10,195,000  in  1907). 

Asia. 

English  Colonies.  (A)  India  had  in  1901  a population  of 

over  232,000,000  of  which  192,000,000  were  engaged  in  ag- 
riculture. The  number  of  British  born  did  not  exceed 

100.000.  The  leading  crops  of  the  country  are  rice,  wheat 
and  other  cereals,  pulses,  cotton,  oil  seeds,  opium,  tobacco, 
sugar  cane,  tea  and  coffee.  The  climate  is  tropical  with  the 
exception  of  the  high  altitudes  in  the  northern  provinces 
where  the  Himalaya  and  the  Hindu-Kush  Mountains 
stretch  as  a barrier  between  the  Indian  Peninsula  and  the 
rest  of  the  Asiatic  Continent.  Rainfall  is  very  unevenly 


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131 


distributed;  in  order  to  farther  agricultural  pursuits,  a 
splendid  system  of  artificial  irrigation  has  been  established 
in  many  sections  of  India. 

All  manufactures,  until  recently,  were  hand  crafts; 
these  manufactures  consisted  of  cotton  fabrics,  carpets, 
shawls,  wood  and  ivory  carving,  etc.  At  present  there  are 
a number  of  cotton  and  jute  factories,  India  possessing 
about  6,000,000  cotton  spindles,  half  a million  of  jute  spin- 
dles and  giving  employment  close  to  400,000  men.  Of  lesser 
importance  are  woolen  and  paper  mills,  breweries,  etc. 

The  main  obstacle  to  rapid  industrial  development  is 
the  difficulty  of  weaning  the  Indian  away  from  stereotyped 
industrial  methods;  the  work  of  teaching  him  the  use  of 
appropriate  tools  and  labor-saving  devices  is  going  on  unre- 
mittingly, and  the  results  of  this  work  may  be  seen  in  many 
parts  of  India. 

The  chief  exports  in  the  order  named  are : raw  and  man- 
ufactured cotton  and  jute,  rice,  oil  seeds,  hides  and  skins, 
tea,  wheat,  opium,  lac,  raw  wool,  rubber,  spices,  rattan, 
etc.;  the  leading  imports  consist  of  cotton  manufactures, 
metals,  machinery,  hardware  and  cutlery,  railway  equip- 
ment, oils,  provisions,  apparels,  chemicals  and  drugs,  glass, 
spices.  The  largest  part  of  the  import  and  export  trade 
of  India  is  with  the  United  Kingdom,  Germany  occupying 
the  second  place  both  in  the  value  of  imports  and  exports. 
The  United  States  has  a small  share  of  Indian  commerce; 
in  1909  the  exports  from  India  to  the  United  States  were 
$43,500,000  while  the  imports  from  the  United  States  ap- 
proximated $8,370,000;  this  does  not  represent  more  than 
two  per  cent  of  the  total  imports  of  the  country. 

(B)  Ceylon  is  a very  prosperous  island  off  the  coast 
of  India,  its  chief  products  consisting  of  tea,  graphite,  co- 
pra, cinnamon,  cacao  and  cocoanuts.  Rice  is  the  leading 
article  of  import;  other  imports  being  coal  and  coke,  cot- 
ton goods,  spirits,  etc0 


132 


SIMON  LITMAN 


(C)  The  Straits  Settlements  are  important  because  of 
their  geographic  position  on  a route  to  and  from  China  and 
Japan.  The  ports  of  the  colony  are  free  from  duties  and 
most  of  their  trade,  centered  in  Singapore  and  Penang, 
is  transit  trade.  Domestic  exports  consist  of  tin,  which 
comes  from  the  adjacent  mainland  and  islands,  gums, 
spices,  copra,  and  tapioca. 

(D)  Northern  Borneo  is  tropical  in  its  climate  and  pro- 
ducts, the  leading  of  which  are  tobacco,  sage,  pepper,  woods 
and  rubber. 

French  Colonies  are  all  concentrated  in  Indo-China  and 
consist  of  Cochin  China,  Cambodia,  Annam  and  Tonkin, 
They  are  rich  in  resources,  but  at  present  these  resources 
yield  comparatively  little.  The  chief  export  is  rice  which 
amounted  in  1907  to  1,405,000  metric  tons,  valued  at  $30,- 
000,000.  Other  exports  are  fish,  pepper,  hides,  coal,  cot- 
ton, rubber,  and  sugar. 

Dutch  possessions  embrace  some  of  the  best  East  India 
Islands:  Java,  Madura,  South  Borneo,  Celebes  and  the 
Moluccas.  J ava  is  perhaps  the  most  forward  economically 
of  all  the  tropical  possessions  of  European  nations;  it  pro- 
duces tremendous  quantities  of  cane  sugar;  until  recently 
this  was  the  only  product  of  its  vast  and  intensively  worked 
plantations.  At  present  coffee,  tea,  cacao,  cinchona,  tobac- 
co are  also  extensively  cultivated  and  add  to  the  wealth 
of  the  island.  The  islands  possess  deposits  of  coal,  tin, 
and  mineral  oil. 

The  United  States’  Colonies  comprise  the  Philippine  Is- 
lands having  an  area  of  125,000  square  miles  and  a popula- 
tion of  7,650,000,  mostly  of  Malay  origin;  the  two  largest 
islands  are  Luzon  and  Mindanao. 

The  chief  products  are  Manila  hemp,  sugar,  coffee,  rice, 
copra,  tobacco  and  indigo.  Agriculture  is  carried  on  by 
primitive  methods  and  with  antiquated  implements ; means 
of  transportation  are  insufficient,  and  farm  animals  scarce. 
However,  conditions  are  being  gradually  improved  through 


TRADE  AND  COMMERCE 


133 


the  efforts  of  our  Bureau  of  Agriculture,  which  maintains 
experimental  farms  on  the  islands,  distributes  seeds,  roots, 
and  plants  adapted  to  cultivation,  combats  destructive  in- 
sects, etc. 

Large  forests  of  valuable  hardwoods,  dyewoods  and 
gum  cover  the  interior  of  the  islands;  the  forests  are  under 
the  supervision  of  the  Forestry  Bureau,  which  frames  rules 
for  their  protection  and  working. 

Mineral  resources  are  as  yet  undeveloped,  but  prospect- 
ing is  now  being  vigorously  conducted,  and  many  deposits 
of  lignite  (inferior  grade  of  coal),  iron,  gold,  copper,  lead, 
etc.,  have  been  located. 

Asiatic  Russia  may  be  divided  into  Caucasus,  lying 
partly  in  Europe,  partly  in  Asia,  Siberia,  and  Central  Asia. 

(A)  Caucasus  is  rich  in  minerals,  especially  petroleum, 
which  forms  its  largest  product.  The  cultivation  in  Trans- 
caucasia includes  raw  silk,  cotton  and  grapes.  Native  man- 
ufactures consist  of  carpets,  embroideries  and  weapons. 

(B)  Siberia  consists  of  three  sections:  tundras  in  the 
north,  forests  in  the  middle  and  agricultural  region  in  the 
south.  The  latter,  traversed  by  the  Transsiberian  railway, 
is  being  gradually  colonized  by  peasants  from  European 
Russia;  it  offers  good  opportunities  for  the  raising  of  ce- 
reals and  other  hardy  crops  of  the  north  temperate  zone. 
Siberia  is  very  sparsely  populated  and  its  industrial  de- 
velopment has  hardly  begun.  It  possesses  rich  mineral 
deposits,  rivers  stocked  with  fish,  forests  overrun  by  fur- 
bearing animals  and  full  of  valuable  timber;  comparative- 
ly few  of  these  resources  are  as  yet  utilized. 

Agriculture  is  the  leading  industry;  large  quantities  of 
butter  and  cheese  are  exported  to  Europe. 

(C)  Central  Asia  is  in  its  western  part  a desert  with 
an  occasional,  at  times  large  and  beautiful,  oasis  and  with 
possibilities  of  irrigation;  in  its  eastern  portion  it  is  well 
watered,  and  its  fertile  valleys  with  their  black  soil  attract 
ever-increasing  numbers  of  Russian  immigrants.  The  alti- 


134 


SIMON  LITMAN 


tude  of  the  country  permits  the  raising  of  cotton,  grapes, 
figs,  in  addition  to  cereals  and  vegetables. . 

The  commerce  of  Asiatic  Russia  with  the  United  States 
is  comparatively  small.  For  1909  it  did  not  exceed  $2,500,- 
000. 

Independent  Asiatic  States.  (A)  China  has  an  area  by 
one-third  larger  than  that  of  the  United  States  and  an  esti- 
mated population  of  434,000,000  people.  It  is  essentially 
an  agricultural  country,  wheat,  barley,  corn  and  other  cere- 
als, pease  and  beans  being  cultivated  in  the  northeast,  rice, 
tea,  sugar,  cotton  and  indigo  in  the  south.  Because  of  re- 
strictive measures,  the  cultivation  of  the  opium  poppy, 
which  played  such  an  important  role  in  the  commerce  of 
the  past,  is  being  gradually  discontinued. 

China  is  a country  of  vast  mineral  resources,  as  yet 
developed  but  little.  The  coal  fields  of  China  are  considered 
by  some  authorities  to  be  the  largest  in  the  world.  Rich 
deposits  of  iron  ore,  many  in  proximity  to  coal,  are  known 
to  exist;  other  minerals  mined  to  some  extent  are  tin,  lead, 
copper,  and  silver. 

Most  of  the  manufactures  of  China  are  handicrafts. 
The  chief  manufacturing  industries  are  textiles  (silk  and 
cotton)  and  the  making  of  porcelain  or  glassware. 

The  exports  consist  of  raw  and  manufactured  silk,  tea, 
cotton,  beans;  the  imports,  of  cotton  goods,  rice,  sugar, 
kerosene,  opium,  metals,  etc. 

(B)  Japan  occupies  a chain  of  long,  narrow,  much  in- 
dented islands,  extending  from  Kamchatka  in  the  north 
to  Formosa  in  the  south.  Its  position  with  regard  to  the 
Asiatic  Continent  and  to  the  commercial  nations  of  the 
world  is  somewhat  similar  to  Great  Britain’s  position  in 
Europe,  and  it  is  to  this  position,  as  well  as  to  the  fact 
that  almost  every  part  of  Japan  is  within  easy  reach  of 
sea  traffic,  that  we  may  attribute  the  country’s  recent  in- 
dustrial and  commercial  development.  With  an  area  a 
little  larger  than  that  of  California,  J apan  supports  a pop- 


TRADE  AND  COMMERCE 


135 


ulation  of  47,000,000  and  this  notwithstanding  the  moun- 
tainous, volcanic  character  of  the  land,  but  one-sixth  of 
which  is  tillable.  Its  soil  yields  abundantly  to  intensive 
cultivation,  climatic  conditions  being  on  the  whole  favor- 
able to  the  growth  of  both  the  cereals  of  the  temperate 
zone  and  the  economic  plants  of  the  tropics.  Japan  pro- 
duces large  crops  of  rice,  wheat,  barley  and  rye,  rice  being 
the  main  foodstuff  of  the  population  and  by  far  the  most 
important  cereal  crop.  Of  the  industries  producing  for 
export,  cotton  growing,  silk  raising  and  tea  growing  are 
the  most  prominent,  silk  furnishing  more  than  one-fourth 
of  the  exports. 

Japan  has  rich  mineral  resources;  the  yield  of  copper, 
coal  and  clay  is  so  large  that  notwithstanding  the  demands 
of  the  rapidly  growing  domestic  manufactures  consider- 
able quantities  of  these  minerals  are  exported.  Japan 
mines  also  iron,  sulphur,  petroleum,  antimony,  gold  and 
silver. 

The  forests  of  J apan  contain  many  valuable  woods  and 
its  waters  are  full  of  fish,  the  fishing  industry  giving  means 
of  livelihood  to  over  two  millions  of  people. 

The  Japanese  are  skilful  artisans  and  their  work  com- 
pares very  favorably  with  that  of  Great  Britain,  the  United 
States  and  Germany.  The  main  exports  of  Japan  are  raw 
silk  and  silk  manufactures,  cotton  yarn  and  cotton  shirt- 
ings, copper,  coal,  matches,  earthen  ware,  straw  goods, 
camphor. 

The  imports  of  Japan  include  raw  cotton  and  cotton 
manufactures,  iron  and  steel,  rice,  sugar,  oil  cake,  wool  and 
woolens,  wheat  and  wheat  flour.  Great  Britain  heads  the 
list  of  the  importers  with  the  United  States  as  a good  sec- 
ond, followed  by  British  India,  China  and  Germany. 

(C)  Korea  is  a purely  agricultural  country,  producing 
rice,  wheat,  beans,  tobacco  and  cotton  in  its  southern  parts; 
barley,  millet  and  oats  in  the  north.  Methods  of  agricul- 
ture are  primitive  and  means  of  communication  poor. 


136 


SIMON  LITMAN 


A few  gold  mines  are  being  worked;  other  minerals 
known  to  exist  in  abundance  are  iron,  coal  and  copper. 

The  exports  include  rice,  gold,  beans,  hides;  the  imports, 
cotton  goods,  iron  and  railway  material,  timber,  silk  goods, 
tobacco,  petroleum,  etc. 

<D)  Siam. — The  chief  produce  of  Siam  is  rice,  con- 
sumed in  large  quantities  at  home  and  forming  the  staple 
article  of  export.  Other  products  are  salt,  pepper,  dry 
fish,  cattle,  and  sesame;  they  all  contribute  to  the  export 
trade  of  the  country.  Hemp,  tobacco,  cotton  and  coffee 
are  produced  for  local  consumption.  Dense  forests  of 
Upper  Siam  furnish  teak.  The  mineral  resources  of  the 
country  are  large  and  varied,  they  include  gold,  rubies, 
tin,  coal,  iron,  manganese  and  zinc. 

(E)  Persia  contains  an  area  of  628,000  square  miles, 
a vast  portion  of  which  (about  one-third)  is  desert.  Ter- 
ritories adapted  to  agriculture  produce  wheat,  barley, 
rice,  fruits,  tobacco,  cotton  and  silk. 

The  mineral  resources  of  Persia  are  considerable,  but 
poor  means  of  transportation  and  scarcity  of  fuel  and  water 
hinder  their  development. 

Persia  exports  fruits,  raw  cotton,  woolen  hand-made 
carpets,  fish,  raw  silk;  it  imports  cotton,  sugar,  tea,  petro- 
leum, woolens,  flour. 

Russia  is  the  heaviest  importer  into  Persia,  followed 
by  the  British  Empire,  Turkey,  France,  China.  Most  of 
the  exports  go  to  Russia. 

(F)  Afghanistan,  barring  a number  of  fertile  valleys,  is 
an  absolute  desert.  Commerce  is'  carried  on  mostly  with  In- 
dia and  consists  of  exports  of  horses,  cows,  foodstuffs, 
drugs,  tobacco,  and  of  imports  of  manufactured  goods. 

Africa. 

British  Possessions.  (A)  British  West  Africa. — The 

leading  products  of  this  colony  are  palm  oil  and  palm  ker- 
nels, rubber,  cocoa,  ivory,  ostrich  feathers,  live  stock  and 


TRADE  AND  COMMERCE 


137 


hides,  cotton,  gum,  copal,  earth  nuts,  fruits  and  drugs. 
There  are  rich  mineral  deposits,  as  yet  undeveloped.  The 
imports  to  the  value  of  $41,000,000  in  1907  consisted  of 
cottons,  spirits,  hardware,  tobacco.  The  exports  about 
equalled  the  imports  and  included  palm  oil,  palm  kernels, 
gold,  rubber,  cocoa,  etc. 

(B)  British  East  Africa  produces  on  its  lowlands  rice, 
corn  and  other  plants  requiring  a mild  warm  winter;  on 
the  highlands,  wheat,  barley  and  coffee  are  cultivated. 
Cocoa,  cotton  and  tobacco  are  being  successfully  intro- 
duced and  promise  to  increase  considerably  the  economic 
value  of  the  colony.  The  mining  resources  are  unsurveyed; 
iron  is  found  in  most  districts,  gold  in  a few  places,  and 
here  and  there  lie  untouched  deposits  of  copper,  mica, 
graphite,  limestone,  opal  and  carbonate  of  soda.  On  the 
uplands  large  pastures  are  available  for  cattle  raising,  and 
the  forests  in  the  coastal  region  yield  rubber,  gum,  copal, 
figs,  olives,  bamboo,  castor  oil,  beans  and  good  timber.  The 
leading  exports  are  hides  and  skins,  ivory,  rubber,  copra, 
grain  and  wax;  the  imports  consist  of  textiles,  cereals, 
provisions,  iron  and  steel  wares.  Foreign  trade  is  small 
and  is  carried  on  mostly  with  Great  Britain.  The  share 
of  the  United  States  in  this  trade  is  not  over  $1,500,000 
annually. 

(C)  British  South  Africa  comprises  the  richest  parts 
of  the  African  Continent.  In  it  are  included  Cape  Colony, 
Natal,  Orange  River  Colony,  Rhodesia,  Transvaal,  Basuto- 
land and  a few  other  possessions  and  protectorates. 

At  present  gold  and  diamond  mining  is  the  greatest 
source  of  attraction  for  the  European  capitalists  and  set- 
tlers; it  is  carried  on  very  intensively  with  all  modern  ma- 
chinery and  furnishes  the  chief  item  of  exports,  valued  at 
hundreds  of  millions  a year.  Kimberley  is  the  leading 
diamond-producing  center  of  the  world,  supplying  98  per 
cent  of  all  the  diamonds  entering  into  commerce.  Trans- 


138 


SIMON  LITMAN 


vaal  yields  vast  quantities  of  gold  and  silver.  Other  min- 
eral resources  of  South  Africa  are  copper,  coal,  and  iron. 

South  Africa  may  be  divided  climatically  into  (1)  a 
coastal  region  which  is  a lowland  with  a warm  and  in  many 
places  moist  climate,  (2)  a middle  district  of  somewhat 
higher  altitude,  with  a drier  and  a more  healthy  climate, 
well  adapted  to  the  raising  of  w7heat,  barley,  corn,  oats 
and  other  cereals,  and  (3)  a high  inland  plateau,  where  the 
air  is  exceedingly  dry  and  the  rainfall  very  scanty.  The 
coastal  region  produces  sugar,  cotton,  tobacco  and  wine. 
The  dry  plains  of  the  interior  are  used  for  a sheep-raising 
industry,  after  mining  the  largest  source  of  the  country’s 
wealth.  Manufacturing  establishments  include  flour  mills, 
breweries,  tobacco  factories,  etc.  The  exports  consist  of 
gold  and  diamonds,  wool,  ostrich  feathers,  angora  hair, 
hides,  skins  and  coal.  The  imports  are  largely  textiles, 
foods,  drinks,  iron  and  steel  goods,  leather  and  leather 
manufactures,  etc. 

By  far  the  largest  amount  of  trade  is  carried  on  with 
Great  Britain.  The  exports  to  the  United  States  are  in- 
significant, and  the  imports  from  there  are  also  compara- 
tively small;  in  1909  the  first  were  valued  at  $1,700,000, 
the  second  at  $7,300,000. 

French  Possessions.  (A)  Algeria. — The  chief  occupa- 
tion of  the  Algerian  population  is  agriculture.  The  crops 
consist  of  wheat,  barley,  oats,  corn,  potatoes,  beans.  Or- 
anges, dates,  bananas,  figs,  almonds  and  many  other  fruits 
grow  abundantly  and  are  shipped  to  France  by  fast  steam- 
ers crossing  the  Mediterranean  between  Algiers  and  Mar- 
seilles in  twenty-four  hours.  The  production  of  olive  oil  and 
the  making  of  wine  are  of  importance  and  add  considerably 
to  the  exports  of  the  colony.  The  mines  of  Algeria  are 
worked  for  iron,  zinc,  silver,  lead,  copper  and  coal.  The 
forests  are  cut  for  firewood  and  for  industrial  purposes; 
in  some  of  them  are  found  cork  oak  trees.  Extensive 
fisheries  yield  sardines,  sprats,  anchovies,  tunny-fish,  etc. 


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139 


The  main  exports  are  wine,  sheep,  wheat,  barley,  olive 
oil,  cork,  phosphates,  zinc  ore,  fruit;  the  main  imports, 
cottons,  clothing,  linen,  machinery  and  other  metal  works, 
woodworks,  sugar,  etc.  France  monopolizes  almost  the 
entire  foreign  trade  of  Algeria,  over  80  per  cent  of  the  im- 
ports coming  from  France  and  about  70  per  cent  of  exports 
going  to  that  country. 

(B)  Tunis  adjoins  Algeria  and  like  in  the  latter  colony 
the  chief  industry  of  the  people  is  agriculture.  The  prod- 
ucts resemble  those  of  Algeria,  being  wheat,  barley  and 
oats,  olives  and  wine,  oranges,  lemons,  almonds,  alfalfa  and 
cork.  Mining  is  steadily  increasing  in  importance;  the 
minerals  mined  are  copper,  lead,  zinc  and  phosphates. 

Cattle  is  the  largest  item  of  export,  phosphates  being 
second  and  olive  oil  third  in  value.  The  imports  are  cotton 
goods,  metal  work,  hardware  and  machinery,  wheat,  flour, 
sugar.  More  than  one-half  of  the  commercial  relations  is 
with  France. 

(C)  French  Congo,  French  Somali  Coast,  French  West 
Africa  and  the  Sahara  are  of  lesser  significance  commer- 
cially, than  either  Algiers  or  Tunis.  A very  valuable  col- 
ony is  the  Island  of  Madagascar,  whose  vegetable  products 
include  rice,  cotton,  cacao,  vanilla,  and  whose  mineral  re- 
sources contain  gold,  copper,  sulphur,  graphite  and  lead. 
Ninety  per  cent  of  the  imports  are  from  France. 

German  Colonies  consist  of  Togoland,  Kamerun,  Ger- 
man Southwest  Africa  and  German  East  Africa.  They 
are  all  situated  in  the  tropical  part  of  the  continent,  and 
as  yet  have  been  very  little  developed.  The  exports  are 
palm  oil,  palm  kernels,  rubber,  copra,  ivory,  cotton,  cocoa, 
animal  products.  The  imports  comprise  cereals,  meat  and 
provisions,  iron  and  iron  works,  cotton. 

Portuguese  Colonies  embrace  an  area  of  793,980  square 
miles,  the  greater  part  of  which  is  of  comparatively  little 
economic  value.  The  one  thousand  miles  of  coast  line  of 
Angola  are  marshy,  malarial  and  devoid  of  good  harbor 


140 


SIMON  LITMAN 


sites;  the  same  is  true  of  the  coast  of  the  Portuguese  East 
Africa  and  of  Guinea.  The  chief  products  are  rubber, 
the  supplies  of  which  are  however  becoming  exhausted, 
cotton,  the  growing  of  which,  although  it  could  be  made 
remunerative,  is  neglected,  sugar,  cocoanuts,  beeswax, 
ivory,  mining  products  and  animal  products.  The  chief 
imports  are  textiles,  iron  works,  alcoholic  liquors;  the  lead- 
ing exports  comprise  coffee,  rubber,  ivory,  wax,  various 
ores  and  dried  fish.  The  trade  is  largely  with  Portugal. 
The  Portuguese  possessions  also  include  a few  small  is- 
lands: Cape  Verde,  Prince’s  and  St.  Thomas. 

Belgian  Possessions  consist  of  Congo,  which  state  lost 
its  fictitious  independence  and  freedom  in  1907,  the  year 
of  the  annexation  to  Belgium.  The  area  of  the  colony  is 
estimated  at  910,000  square  miles,  the  population  at  from 
9,000,000  to  20,000,000;  the  number  of  Europeans  approx- 
imates 3,000,  more  than  half  of  which  are  Belgians.  The 
chief  products  are  rubber,  ivory,  palm  oil,  copal,  gold,  cof- 
fee and  cacao.  The  imports  include  cotton  (the  largest 
single  item),  provisions,  alcoholic  liquors,  arms,  ammuni- 
tion, machinery.  Most  of  the  trade  is  carried  on  with 
Belgium. 

Italian  Dependencies  extend  on  the  coast  of  the  Red 
Sea  for  a distance  of  670  miles  and  include  an  area  of  88,500 
square  miles.  Abundance  of  pasture  land  permits  the  rais- 
ing of  camels,  oxen,  sheep  and  goats,  whose  products  sup- 
ply only  local  trade.  Scarcity  of  water  necessitates  works 
of  irrigation  before  agriculture  can  be  carried  on  success- 
fully. Pearl  fishing  is  an  industry  of  some  significance. 
Italy  exercises  a protectorate  over  a part  of  Somaliland 
along  the  east  coast  of  Africa. 

Tributary  States  of  Turkey.  (A)  Egypt,  although  trib- 
utary to  Turkey,  is  occupied  by  Great  Britain,  which  man- 
ages its  finances  and  supervises  and  regulates  its  com- 
merce. The  fertile  part  of  the  country  lies  on  both  sides 
of  the  river  Nile,  the  waters  of  which  are  used  for  irrigat- 


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141 


ing  purposes.  The  fertility  of  this  region  is  so  great  that 
it  permits  the  raising  of  three  crops  a year:  cereals  in 
winter,  cotton,  sugar  and  rice  in  summer,  corn,  millet  and 
vegetables  generally  in  autumn.  Wheat,  corn  and  cotton 
are  the  main  crops,  raw  cotton  being  by  far  the  largest 
item  of  export  from  the  country.  The  imports  consist  of 
textile  and  metal  manufactures,  wood,  coal,  provisions. 
Great  Britain  is  at  the  head  of  the  list  of  exporters  from 
and  importers  into  Egypt.  In  1909  the  United  States  re- 
ceived from  Egypt  goods  to  the  value  of  $11,200,000,  while 
its  exports  to  Egypt  were  about  $1,300,000. 

(B)  Tripoli  lies  along  the  Mediterranean.  Its  prod- 
ucts are  scanty.  Barley  is  the  chief  food  of  the  people. 
The  leading  industry  in  the  inter  or  is  herding.  The  coastal 
climate  and  soil  permit  the  cultivation  of  dates,  olives, 
oranges  and  lemons,  small  quantities  of  cocoa  being  ex- 
ported. Other  items  of  export  are  esparto  grass  and 
sponges. 

Independent  African  States.  (A)  Morocco  lies  in  north- 
ern Africa,  along  the  shores  of  the  Atlantic  and  the  Medi- 
terranean. It  occupies  a part  of  the  continent  nearest  to 
Europe  and  because  of  the  extreme  fertility  of  its  shore 
region  has  decidedly  a promising  future.  A despotic  form 
of  government  hinders  industrial  and  commercial  develop- 
ment. The  interior  of  the  country  is  a high  plateau  with 
scanty  rainfall,  where  only  an  occasional  oasis  permits  agri- 
cultural pursuits.  The  exports  consist  largely  of  the  prod- 
ucts of  herding:  hides,  skins,  wool,  oxen,  etc.  They  in- 
clude also  a few  cereals,  barley  particularly,  nuts  and  fruits. 
The  imports  are  cotton  manufactures,  sugar,  tea,  flour,  iron 
and  hardware,  etc.  The  trade  is  carried  on  mostly  with 
Great  Britain,  France  and  Germany. 

(B)  Abyssinia  is  a mountainous  tropical  country;  its 
lowlands  are  adapted  to  the  growth  of  the  coffee  tree,  the 
sugar  cane  and  the  coffee  plant;  its  mountain  slopes  and 
plateaus  can  yield  the  fruits  of  southern  Europe  and  the 


142 


SIMON  LITMAN 


wine  grape,  while  its  higher  altitudes  are  either  covered 
with  valuable  forests  or  are  suited  for  the  cultivation  of 
the  temperate  zone  cereals.  Abyssinia  is  rich  in  minerals, 
especially  gold,  copper,  iron,  coal,  sulphur,  and  salt,  and 
its  pastures  support  large  herds  of  horses,  oxen  and  sheep. 

The  exports  consist  of  coffee,  hides,  skins,  wax,  ivory 
and  gold;  the  imports  of  cotton  and  w^oolen  fabrics,  carpets, 
hardware,  arms  and  ammunition.  The  share  of  the  United 
States  in  this  trade  is  very  insignificant. 

(C)  Liberia  lies  on  the  western  coast  of  Africa.  It  has 
magnificent  forests  of  mahogany,  rosewood,  dyewood  and 
medicinal  shrubs,  but  the  forests  remain  unworked,  and 
the  fertile  soil  of  this  small  negro  republic  is  scarcely  cul- 
tivated. It  exports  some  coffee  of  inferior  quality,  rubber, 
palm  oil,  cocoa,  ivory,  ginger,  cain-wood;  imports  cottons, 
provisions,  boots,  hardware,  dried  fish.  Great  Britain  and 
Germany  are  the  leading  importers  and  exporters. 

Australia. 

The  Commonwealth  of  Australia,  a colony  of  Great  Brit- 
ain, occupies  a landmass  situated  entirely  in  the  southern 
hemisphere  and  separated  by  vast  stretches  of  open  sea 
from  all  the  great  commercial  nations  of  the  world.  It 
lies  between  the  tenth  and  the  fortieth  degrees  of  latitude 
and  its  human,  vegetable  and  animal  life  are  therefore 
under  the  constant  influence  of  the  tropical  and  subtropical 
sun. 

The  Australian  Continent  is  somewhat  smaller  in  size 
than  Europe,  but  this  vast  territory  has  a population  of 
only  4,200,000  (December,  1907),  by  far  the  largest  pro- 
portion of  which  live  in  New  South  Wales  and  Victoria. 
Other  states  composing  the  commonwealth  are  Queensland, 
South  Australia,  Western  Australia  and  Tasmania. 

The  interior  of  Australia  is  practically  rainless,  most 
of  the  rain  brought  by  the  southeast  trade  winds  being 
deposited  on  the  eastern  mountain  slopes  and  on  the  coast. 


TRADE  AND  COMMERCE 


143 


Not  adapted  to  agriculture,  many  parts  of  the  interior  pre- 
sent good  pasture  land  and  support  millions  of  sheep  and 
cattle,  Australia  being  the  principal  sheep-raising  country 
on  earth. 

Copious  rains  fall  on  the  northern  coast  of  Australia; 
the  forests  found  on  this  coast  abound  in  cabinet  and  other 
useful  woods;  the  southwestern  coast  has  comparatively 
little  rainfall. 

Before  the  coming  of  the  European  settlers,  Australia, 
because  of  its  isolation  from  the  rest  of  the  world,  had  its 
own  peculiar  trees,  roots  and  grasses,  animals  and  birds. 
They  were  sufficient  to  satisfy  the  simple  needs  of  the 
natives,  but  the  white  man,  in  order  to  be  able  to  live  the 
life  of  a civilized  being,  was  obliged  to  import  cereals, 
fruits  and  domesticated  animals  from  the  old  continent; 
using  the  sailing  vessel  and  the  steamer,  he  overcame  that 
natural  barrier  which  the  ocean  presents  to  the  migra- 
tion of  animals  and  plants.  At  present  Australian  soil 
yields  wheat,  corn,  barley,  oats,  potatoes,  pumpkins  and 
melons,  as  well  as  bananas,  pineapples,  oranges,  coffee  and 
tobacco. 

After  wool  growing,  mining  is  the  main  source  of  Aus- 
tralian wealth  and  the  most  important  industry  from  the 
point  of  view  of  foreign  trade.  Australia  has  rich  depos- 
its of  gold,  copper,  silver,  lead,  tin,  coal  and  bismuth;  in 
1907  it  exported  about  $47,000,000  of  gold  bullion  and  spe- 
cie, also  considerable  quantities  of  the  other  above-men- 
tioned minerals. 

The  animal  industry  in  addition  to  wool  furnishes  for 
export  butter,  tallow,  skins  and  hides,  mutton,  leather,  beef, 
living  animals  and  tinned  meat. 

Wheat  and  flour  are  also  items  of  considerable  export, 
wheat  with  a value  of  about  $24,000,000  being  the  third 
in  the  list  (in  1907). 

The  imports  into  Australia  are  much  smaller  than  its 
exports  and  consist  of  metal  manufactures,  machinery  and 


144 


SIMON  LITMAN 


implements,  cotton,  linen,  woolen  and  silk  goods,  apparel, 
iron  and  steel,  timber,  tea,  spirits,  oils  and  tobacco. 

Australia  trades  mainly  with  the  United  Kingdom;  in 
1909  the  imports  from  the  United  States  were  $24,077,000, 
while  the  exports  to  that  country  equalled  $13,973,000,  the 
first  representing  approximately  one-eleventh  of  the  Aus- 
tralian imports,  the  second  one  twenty-seventh  of  its  ex- 
ports. 

New  Zealand  lies  about  1,200  miles  east  of  Australia  and 
consists  of  two  large  and  a number  of  small  islands.  Two- 
thirds  of  the  surface  of  New  Zealand  is  suitable  for  agri- 
culture and  grazing,  the  rest  is  under  forest  or  barren. 

New  Zealand  is  mountainous  in  many  parts,  and  min- 
eral resources  are  abundant,  especially  gold  and  coal,  both 
of  which  are  extensively  mined  and  add  considerably  to 
the  wealth  of  the  islands. 

The  colony,  however,  is  firstly  a pastoral  country,  wool, 
frozen  meat,  butter  and  cheese,  sheep  skins,  pelts  and  tal- 
low furnishing  the  leading  items  of  export,  and  the  animal 
industry  being  the  most  firmly  established  and  the  most 
rapidly  growing  industrial  pursuit  of  the  people ; the  num- 
ber of  sheep  in  New  Zealand  exceeds  20,000,000,  and  in 
1906  the  wool  clip  was  175,000,000  pounds,  while  approxi- 
mately 4,274,000  animals  were  exported  as  frozen  mutton 
and  lamb  (226,856,000  pounds). 

The  chief  crops  are  oats,  wheat  and  barley;  the  whole 
amount  produced  is  consumed  at  home,  the  total  value  of 
grains  exported  showing  great  fluctuations,  but  averaging 
less  than  one  million  dollars  annually. 

An  interesting  item  of  exports  are  rabbit  skins,  their 
number  reaching  17,000,000  in  1893  and  has  been  declining 
since;  it  amounted  to  5,454,000  in  1906;  the  colony  regards 
with  satisfaction  the  decline  in  exports  of  this  commodity, 
as  it  indicates  the  gradual  abatement  of  the  rabbit  pest. 

Manufacturing  industries  comprise  meat-freezing  plants, 
butter  and  cheese  factories,  sawmills  and  planing  mills, 


TRADE  AND  COMMERCE 


145 


tanning  and  wool-scouring  establishments,  grain  mills, 
clothing,  boot  and  shoe  factories,  breweries,  etc. 

The  principal  imports  are  clothing  and  textiles,  tobacco, 
fruit,  paper  and  printed  books. 

Great  Britain  leads  both  in  the  value  of  exports  from 
and  imports  into  New  Zealand;  next  in  importance,  but 
far  smaller  than  the  first,  are  the  trading  relations  with 
Australia,  the  United  States  occupying  the  third  place. 
In  1909  New  Zealand’s  exports  to  the  United  States  were 
$2,847,000,  and  the  imports  from  that  country  $5,463,000, 
—an  insignificant  amount  considering  the  total  foreign  com- 
merce of  the  islands;  the  latter  approximates  $180,000,000 
a year. 

Oceania. — Throughout  the  vast  expanse  of  the  Pacific 
Ocean  are  scattered  thousands  of  islands,  some  isolated  and 
others  grouped  together.  The  islands  are  tropical  in  char- 
acter, sugar  cane,  cocoanut,  banana  and  breadfruit  being 
their  staple  products.  Sugar  and  copra  (dried  meat  of 
the  cocoanut)  are  exported  from  the  islands,  also  vanilla, 
mother  of  pearl,  etc.  Imports  consist  of  cotton  goods, 
hardware,  machinery,  provisions. 

Most  of  the  islands  are  under  the  control  of  the  United 
States  or  some  European  nation  (Great  Britain,  Germany 
or  France).  With  the  exception  of  the  Hawaiian  Islands, 
the  trading  relations  of  Oceania  with  the  United  States 
are  unimportant,  both  imports  and  exports  being  below 
$1,000,000  a year. 

Possessions  of  the  United  States. — The  Hawaiian  Is- 
lands have  a total  area  of  6,450  square  miles  and  a popula- 
tion of  180,000.  The  islands  lie  in  the  torrid  zone,  are 
mountainous  and  volcanic,  but  their  soil  is  highly  fertile 
and  well  adapted  to  the  raising  of  sugar,  rice,  coffee,  hemp, 
bananas,  pineapples,  etc.  In  1908  the  exports  from  Hawaii 
to  the  United  States  amounted  to  $41,640,000,  of  which 
$38,600,000  was  for  raw  sugar,  the  rest  for  refined  sugar, 


B— IV— 10 


146 


SIMON  LITMAN 


fruits,  coffee  and  rice.  The  value  of  shipments  from  the 
United  States  to  Hawaii  was  $15,300,000. 

Besides  Hawaii  the  United  States  owns  in  Oceania  the 
island  of  Guam,  having  an  area  of  about  200  square  miles 
and  a population  of  11,500,  and  the  island  of  Tutuila,  with 
an  area  of  54  square  miles  and  a population  of  3,800.  The 
American  flag  has  been  hoisted  also  on  many  smaller  Pacif- 
ic islands,  some  of  them  uninhabited.  These  islands  are  of 
very  little  commercial  value  at  present. 

IX.  THE  UNITED  STATES. 

Both  the  absolute  and  the  relative  figures  showing  the 
industrial  and  commercial  development  of  the  United 
States  tell  the  most  wonderful  story  of  inventiveness,  ener- 
gy, pluck  and  perseverance  ever  displayed  by  civilized  man 
in  the  conquest  of  a continent. 

The  continent  with  all  its  vast  resources  existed,  but 
it  was  a wilderness,  and  it  took  years  of  adaptation,  of 
strenuous  life  on  the  frontier,  of  struggles  with  exuberant 
and  stubborn  nature,  before  the  dismal  forests  gave  way 
to  the  ax  and  the  saw,  before  the  mountains  began  to  yield 
their  wealth  of  minerals,  before  the  immense  plains  became 
cultivated  fields,  and  the  silent  banks  of  lakes  and  rivers 
seats  of  busy  mills  and  factories,  throbbing  with  ceaseless 
activity,  never  stopping,  never  ending. 

It  took  years  of  planning  and  daring,  before  railroads, 
starting  from  the  settled  East,  and  crossing  mountains  and 
deserts,  opened  up  empires  in  the  North,  in  the  South  and 
in  the  West,  making  out  of  widely  segregated  territories, 
the  abodes  of  nomadic  Indians,  a powerful  Unit,  a coun- 
try which  today  stands  as  the  embodiment  of  the  greatest 
economic  efficiency  and  prosperity  known  in  history. 

Our  development  has  been  particularly  phenomenal  in 
the  last  few  decades.  With  the  close  of  the  Civil  War 
ended  the  first  chapters  of  our  industrial  life.  With  slavery 
gone  in  the  South  and  the  power  to  organize  forces  and 


TRADE  AND  COMMERCE 


147 


to  lead  them  on  to  victory  developed  in  the  North,  there 
began  a new  economic  era.  The  captain  of  war  became 
the  “ captain  of  industry,”  and  the  fertile  soil,  the  rich 
mine,  the  virgin  forest  surrendered  to  him  their  wealth 
with  a bountifulness  unknown  in  any  other  country. 

Aided  by  a climate  generally  favorable  to  the  growth 
of  economic  plants  and  to  the  active  work  of  man  in  the 
field  and  in  the  shop,  we  have  become  the  foremost  amongst 
the  world’s  nations  in  almost  every  line  of  endeavor:  in 
agriculture  and  in  mining,  in  manufactures  and  in  com- 
merce. 

However,  granting  all  praise  due  to  our  industrial 
leaders  and  to  the  rank  and  file  of  our  laborers,  it  is  well 
to  remember  that  they  were  aided  in  their  enterprises  by 
the  superabundance  and  variety  of  natural  resources. 
They  were  able  to  do  constructive  work  unhampered  by 
the  necessity  to  economize,  to  utilize  to  the  best  advantage 
every  foot  of  ground  in  the  field.  They  were  as  lavish  in 
their  use  of  these  resources,  as  Nature  was  of  her  gifts, 
with  the  result  that  frequently  the  use  became  an  abuse; 
they  looked  upon  natural  factors  as  inexhaustible.  But 
that  time  has  gone  by.  The  Nation  is  being  gradually 
awakened  to  the  realization  of  the  fact  that  every  tree 
which  is  being  cut  without  replacement  and  every  ton  of 
coal  or  iron  that  is  being  wasted,  hastens  the  day  when 
there  will  be  no  trees  to  cut  and  no  minerals  to  mine. 

The  problem  of  the  conservation  of  natural  resources 
brought  recently  to  the  front  by  our  Federal  Government 
is  of  more  than  academic  significance,  it  is  of  vital  impor- 
tance to  the  continued  prosperity  of  the  Nation. 

Our  practice  has  been  vast  prodigality.  It  paid  and  it 
pays  to  waste,  describes  the  industrial  method  of  our  peo- 
ple. It  paid  to  work  only  the  rich  streaks  of  ore,  leaving 
poorer  grades  unutilized,  in  many  instances  rendering 
them  unavailable  for  ourselves  and  for  future  generations; 
it  paid  to  exploit  the  fertility  of  our  soil,  there  was  so 


148 


SIMON  LITMAN 


much  good  land  at  hand  and  refertilization  is  a tedious 
process;  it  paid  to  cut  forest  after  forest  and  never  to 
plant  a single  tree.  But  even  the  greatest  treasure  comes 
to  an  end;  we  must  realize  that  unless  our  ruthless  exploita- 
tion stops  we  will  soon  be  ‘ 4 paid  in  full.” 

But  waste  is  not  confined  to  the  United  States,  and 
very  often  it  is  nothing  but  apparent  waste.  Frequently 
in  order  to  economize  on  labor,  we  are  justified  in  wast- 
ing other  factors  of  production,  less  valuable.  The  boasted 
intensity  of  cultivation  and  the  marvelous  yields  per  acre 
in  many  instances  are  made  possible  only  by  hard  cheer- 
less work  long  before  sunrise  and  hours  past  sunset,  work 
on  week  days  and  on  Sundays,  work  of  adults  and  of  chil- 
dren. Fortunately,  intelligent  tillage  of  the  soil  does  not 
require  this  kind  of  cultivation;  through  use  of  fertilizers, 
scientific  rotation  of  crops,  irrigation,  etc.,  the  yields  per 
acre  have  been  raised  to  a considerable  degree;  they 
reached  the  average  of  30  bushels  per  acre  in  England,  28 
bushels  in  Holland  and  Belgium,  24  bushels  in  Germany 
and  19  bushels  in  France.  The  yield  in  the  United  States 
is  14  bushels,  while  in  Italy  it  is  12  bushels,  in  Russia  8 
bushels  and  in  India  7 bushels. 

Our  agricultural  experiment  stations  are  doing  excel- 
lent work  in  introducing  better  methods  of  agriculture; 
many  a depleted  soil  has  been  brought  back  to  its  former 
productivity  and  many  an  abandoned  farm  has  been  re- 
gained, through  the  intelligent  efforts  of  our  agricultural 
chemists.  Each  state  has  from  one  to  two  experiment  sta- 
tions. Bulletins,  containing  valuable  information  to  the 
grain  and  stockraiser,  to  the  horticulturist,  to  the  dairy- 
man, etc.,  are  issued  periodically. 

In  Washington  a number  of  bureaus  act  as  farmers’ 
aids  and  advisers.  The  most  important  of  these  are  the 
Weather  Forecast  Bureau,  the  Bureau  of  Plant  Industry, 
the  Entomological  Bureau  and  the  Bureau  of  Chemistry. 


TRADE  AND  COMMERCE 


149 


The  prognostics  of  the  Weather  Forecast  Bureau,  based 
upon  observation  of  air  currents,  atmospheric  pressure, 
etc.,  are  of  inestimable  value.  The  Bureau  of  Plant  In- 
dustry has  a force  of  experts  searching  for  new  plants 
and  seeds  capable  of  thriving  in  various  parts  of  the  United 
States;  it  was  through  the  instrumentality  of  this  bureau 
that  sorghum,  tea,  rice,  mangoes,  etc.,  were  transplanted 
from  the  Orient  to  this  country,  and  that  new  and  better 
varieties  of  figs,  grapes,  watermelons,  radishes,  cotton  and 
wheat  were  introduced.  The  Entomological  Bureau  dis- 
covers helpful  and  parasitic  insects;  it  tells  how  to  nourish 
the  first  and  how  to  exterminate  the  second.  The  Bureau 
of  Chemistry  determines  the  fertility  of  any  given  piece 
of  land,  the  kind  of  crops  it  will  grow  best  and  the  kind 
of  fertilizers  it  needs. 

Agriculturally,  the  United  States  is  usually  divided  into 
six  great  sections,  in  each  of  which  certain  staple  prod- 
ucts are  predominant.  These  sections  are  as  follows : 

(1)  The  New  England  and  New  York  Section,  charac- 
terized by  diversified  farming  and  dairying. 

(2)  The  Com  and  Winter  Wheat  Belt,  stretching  from 
the  Atlantic  in  the  East  to  Nebraska  and  Kansas  in  the 
West  and  from  the  35°  to  the  43°  of  latitude. 

(3)  The  Spring  Wheat  Belt,  extending  north  of  the 
43°  of  latitude  and  consisting  of  the  states  of  Wisconsin, 
Minnesota  and  the  Dakotas. 

(4)  The  Cotton  Belt,  extending  south  of  the  35°  to  the 
Gulf  of  Mexico  and  from  the  Atlantic  in  the  East  to  Texas 
in  the  West. 

(5)  The  Wool  and  Live  Stock  Belt,  embracing  the  Great 
Western  Plateau  in  the  states  of  New  Mexico,  Colorado, 
Wyoming,  Montana,  Idaho,  Utah,  Arizona  and  Nevada. 

(6)  The  Pacific  Coast  Region,  characterized  by  grain 
and  fruit  growing. 


150  SIMON  LITMAN 

Agriculture. 

Vegetable  Products. — The  most  important  branch  of 

agriculture  in  the  United  States  is  the  raising  of  cereals. 
Cereals  represent  more  than  half  of  the  total  value  of  the 
country’s  crop  and  more  than  half  of  the  land  under  cul- 
tivation is  devoted  to  the  production  of  grains.  The  North 
Central  Division  extending  from  the  Alleghanies  in  the 
East  to  approximately  the  one  hundredth  degree  of  longi- 
tude in  the  West  is  the  great  grain-producing  belt.  In  this 
region  are  the  states  of  Iowa,  Illinois,  Kansas,  Missouri  and 
Nebraska  with  their  stupendous  output  of  corn;  here  are 
the  two  Dakotas,  Minnesota,  Ohio  and  Indiana  leading  in 
the  production  of  wheat,  here  also  is  harvested  about  three 
quarters  of  the  country’s  crop  of  oats  and  most  of  her 
barley  and  rye.  The  other  section  of  the  United  States 
where  cultivation  of  cereals  is  carried  on  very  extensively 
is  the  Northwest. 

Corn  is  the  most  valuable  of  the  crops  in  the  United 
StateSo  In  1907  the  production  of  corn  equalled  2,592,000,- 
000  bushels,  valued  at  $1,337,000,000.  There  is  scarcely 
a state  in  the  Union  which  does  not  grow  corn,  but  only 
in  a few  of  these  states  does  the  raising  of  it  constitute 
the  chief  agricultural  pursuit;  these  states  are  Iowa,  Illi- 
nois, Missouri,  Nebraska,  Kansas,  Indiana  and  Ohio;  they 
form  what  is  known  as  the  corn  belt  of  the  country,  yield- 
ing about  90  per  cent  of  the  total  crop. 

Wheat  is  after  corn  our  leading  crop;  conditions  most 
favorable  to  its  growth  are  found  in  the  north  central  and 
northwestern  regions,  which  raise  far  in  excess  of  their 
home  demand  and  sell  their  surplus  to  the  northeastern, 
southern  and  Rocky  Mountain  states,  as  well  as  to  foreign 
countries.  In  1907  the  production  of  wheat  was  634,000,- 
000  bushels,  valued  at  $554,000,000. 

Wheat  and  corn  growing  in  the  United  States  have 
been  characterized  by  an  extensive  system  of  cultivation 


TRADE  AND  COMMERCE 


151 


which  has  necessitated  the  continuous  taking  up  of  new 
land.  But  this  last  cannot  be  done  indefinitely.  Our  do- 
mestic demand  for  wheat  increases  rapidly  from  year  to 
year,  while  most  of  the  fertile  ground  has  already  been 
occupied.  Because  of  this,  improved  methods  of  agricul- 
ture, intensive  farming  based  upon  a careful,  intelligent 
use  of  the  soil  seems  to  be  the  only  permanent  solution 
of  the  problem  confronting  us  as  producers  of  breadstuffs. 

Oats. — The  United  States  raised  in  1907,  754,000,000 
bushels  of  oats,  valued  at  $335,000,000.  Oats  are  grown 
mostly  in  the  states  bordering  on  the  Great  Lakes,  Wis- 
consin, Michigan,  Illinois,  Iowa,  Ohio,  New  York  and 
Pennsylvania  being  the  largest  producers. 

Barley,  rye  and  buckwheat  are  of  comparatively  little 
importance  in  our  agricultural  economy,  particularly  the 
last  two  cereals.  In  1907  our  crop  of  barley  was  154,000,- 
000  bushels,  of  rye  31,500,000  bushels  and  of  buckwheat 
14,300,000  bushels.  Barley  is  grown  principally  in  Cali- 
fornia, Minnesota,  Iowa  and  Wisconsin;  rye  in  Wiscon- 
sin, New  York,  Pennsylvania,  Nebraska  and  Michigan; 
buckwheat  in  New  York  and  Pennsylvania. 

In  addition  to  these  cereals  we  raise  rice  (in  the  Caro- 
linas,  Texas  and  Louisiana),  millet,  etc. 

Cotton. — The  raising  of  cotton  is  of  the  utmost  signif- 
icance in  the  economic  life  of  the  United  States.  The 
growing  of  it  is  restricted  to  the  South  Central  and  South 
Atlantic  states.  Hardly  a cotton  plant  is  to  be  found  north 
of  the  thirty-seventh  parallel  of  latitude  or  west  of  the 
one  hundredth  degree  of  longitude.  Immediately  after  the 
War  of  Secession  attempts  were  made  to  grow  cotton  farth- 
er to  the  north  or  to  the  west  of  the  indicated  area,  but 
they  all  proved  unsuccessful,  because  of  unfavorable  cli- 
matic conditions.  Within  the  limits  of  the  southern  states, 
the  cultivation  of  cotton  seems  to  tend  towards  concen- 
tration in  the  most  favorably  situated  localities,  receding 
southwestward.  The  chief  cotton-producing  states  are 


152 


SIMON  LITMAN 


Texas,  Georgia,  Mississippi,  Alabama,  the  Carolinas  and 
Arkansas.  The  total  crop  in  1907  equalled  5,303,000,000 
lbs.,  valued  at  $551,500,000. 

Sugar —In  the  production  of  sugar  the  United  States 
does  not  occupy  a very  prominent  place.  However,  there 
are  few  agricultural  industries  that  have  developed  as 
rapidly  within  the  last  few  years  as  this  branch  of  farm- 
ing,  and  the  future  is  very  promising,  particularly  for  the 
growth  of  the  sugar  beet.  The  main  cause  which  prevented 
the  United  States  from  raising  beets  was  the  intensity  of 
cultivation  this  branch  of  agriculture  requires;  this  is  a 
temporary  cause,  which  disappears  with  a greater  density 
of  population  and  with  a more  pressing  demand  upon  the 
products  of  the  soil.  Our  beet-sugar  crop  equalled  in  1907, 
967,000,000  tons,  valued  at  $23,895,000.  The  chief  beet- 
sugar  producing  states  are  those  in  the  North  and  in  the 
West,  California,  Michigan,  Nebraska  and  Utah  being  in 
the  lead. 

As  to  the  sugar  cane,  its  production  is  almost  entirely 
confined  to  the  State  of  Louisiana;  the  proximity  of  Cuba, 
Porto  Rico  and  other  West  Indies,  the  small  cost  of  bring- 
ing the  product  from  the  rich  sugar  plantations  of  the 
Hawaiian  and  the  Philippine  Islands,  the  dangers  of  unex- 
pected frosts,  all  act  as  checks  upon  the  development  of 
the  industry.  In  1907  the  amount  of  sugar  cane  produced 
wras  544,000,000  tons,  valued  at  $28,800,000. 

Tobacco. — The  United  States  leads  the  world  in  the  pro- 
duction of  tobacco;  the  states  of  Kentucky,  North  Carolina 
and  Virginia  yield  nearly  three-fifths  of  our  total  output; 
other  large  producers  are  Tennessee,  Ohio,  Maryland  and 
Wisconsin.  About  one-third  of  the  tobacco  produced  is 
exported,  most  of  which  is  of  an  inferior  grade ; some  tobac- 
co is  imported,  the  importations  coming  chiefly  from  Cuba 
and  Turkey,  and  representing  high-grade  goods.  The  dif- 
ference in  the  quality  of  tobacco  imported  and  exported 
may  be  judged  from  the  fact  that  in  1909  we  exported 


TRADE  AND  COMMERCE 


153 


334,000,000  lbs.,  valued  at  $29,800,000,  while  our  imports 
were  33,290,000  lbs.,  valued  at  $18,000,000.  In  the  United 
States,  Connecticut  produces  the  most  expensive  qualities 
of  tobacco. 

Hay  is  the  principal  forage  crop  of  the  United  States; 
in  1907  our  output  was  63,700,000  tons  valued  at  $743,500,- 
000.  It  may  be  noticed  that  in  1907  the  value  of  the  hay 
crop  was  greater  than  that  of  the  cotton  or  of  the  wheat 
crop.  Hay  grows  most  abundantly  in  the  corn  belt,  in 
the  dairying  states  of  New  York  and  Pennsylvania,  and  in 
California. 

Flax  and  Hemp. — Flax-growing  is  carried  on  in  the 
United  States  for  the  seed  and  not  for  the  fiber.  The 
United  States  ranks  first  amongst  the  flaxseed-producing 
countries,  but  the  few  linen  factories  which  we  have  in  the 
East  must  depend  on  foreign  material.  More  than  four- 
fifths  of  the  total  acreage  under  flax  is  in  Minnesota  and 
the  two  Dakotas. 

Hemp  is  cultivated  almost  exclusively  in  Kentucky;  the 
crop  is  small. 

Live  Stock  and  Dairy  Industries. 

The  raising  of  live  stock  occupies  a mosi  prominent 
place  in  American  agriculture. 

The  principal  grazing  regions  of  the  United  States  are 
found  in  the  semi-arid  West,  though  cattle  and  other  do- 
mestic animals  are  raised  more  or  less  throughout  the  en- 
tire agricultural  portion  of  the  country. 

On  January  1,  1909,  the  total  value  of  farm  animals 
exceeded  $4,520,000,000;  this  included  71,000,000  head  of 
cattle,  20,640,000  horses,  56,000,000  sheep,  4,000,000  mules 
and  96,300,000  swine.  In  the  number  of  cattle,  of  swine 
and  of  mules  the  United  States  leads  the  world.  In  the 
number  of  horses,  Russia,  credited  with  25,000,000,  exceeds 
the  United  States,  but  the  Russian  horse  is  generally  small- 
er and  weaker  than  the  American  animal.  With  regard 


154 


SIMON  LITMAN 


to  sheep,  the  United  States  is  surpassed  by  Australia,  Ar- 
gentina and  Russia.  The  supply  of  goats  and  asses  is  com- 
paratively small,  due  chiefly  to  the  fact  that  there  is  little 
need  for  these  mountain-bred  animals  in  the  greater  part 
of  the  country. 

In  the  United  States,  as  in  most  of  the  other  countries, 
live-stock  raising  for  beef  is  an  industry  distinct  from 
dairying. 

The  largest  number  of  heads  of  cattle  is  found  in  the 
North  Central  States;  next  in  importance  is  the  South 
Central  division,  then  the  Western  and  the  North  Atlantic. 
Texas  has  about  one-seventh  of  the  number  of  cattle;  it 
is  followed  by  Iowa,  Kansas,  Nebraska  and  Illinois.  The 
great  center  of  live  stock  production  is  west  of  the  Miss- 
issippi River;  it  coincides  to  a large  degree  with  the  corn 
belt;  cattle  from  other  parts  of  the  United  States  are  fre- 
quently sent  into  this  section  to  be  fattened  before  their 
delivery  to  the  slaughtering  houses. 

Slaughtering  and  Meat  Packing  have  shown  a remark- 
able development  since  1850,  when  the  value  of  their  prod- 
ucts was  $11,980,000;  in  1905  it  reached  $913,915,000.  Over 
55  per  cent  of  the  industry  is  carried  on  in  the  Central 
States  and  about  19  per  cent  in  the  Western  division,  leav- 
ing but  26  per  cent  for  the  Middle,  New  England,  Southern 
and  Pacific  states.  Illinois  occupies  by  far  the  most  im- 
portant place  in  the  industry;  in  1905  it  furnished  about 
35  per  cent  of  the  products.  Kansas,  New  York  and  Mis- 
souri are  next,  in  the  order  named.  Meat  packing  is  con- 
centrated in  a few  cities,  Chicago,  Omaha  and  Kansas  City 
being  the  most  important.  In  1905  the  number  of  animals 
slaughtered  was  7,147,000  beeves,  10,875,000  sheep  and 
30,978,000  hogs. 

One  of  the  leading  items  of  export  from  the  United 
States  is  meat  products;  their  total  value  in  1909  was 
$163,000,000;  it  included  fresh,  salted,  pickled  and  cured 
beef,  hams  and  bacon,  pickled  pork,  lard,  canned  meats. 


TRADE  AND  COMMERCE  155 

Great  Britain  is  our  best  customer,  taking  over  one-half  of 
the  exports. 

Dairying  is  developing  most  rapidly.  The  best  condi- 
tions for  the  industry  exist  in  Iowa,  Wisconsin,  Minnesota 
and  Illinois,  also  in  the  central  parts  of  Nebraska  and 
Kansas.  The  total  number  of  milch  cows  in  1908  was  18,- 
000,000  head  and  the  value  of  the  dairy  products  approxi- 
mated $59,000,000.  In  New  England  dairying  has  re- 
placed general  farming. 

Sheep  Raising. — Many  sheep  are  slaughtered  for  table 
purposes,  but  the  principal  value  of  the  animal  lies  in  the 
wool  it  furnishes  for  textiles.  Montana,  Wyoming  and 
New  Mexico  are  the  leading  sheep-breeding  states. 

The  domestic  clip  of  wool  is  not  sufficient  to  supply  the 
needs  of  our  manufacturers  and  about  one-fifth  of  the 
quantity  consumed  is  imported.  Carpet  wools  form  the 
largest  proportion  of  imports. 

Lumber  and  Timber  Products. 

The  timber  industry  is  widely  distributed;  in  this  re- 
spect it  differs  from  other  industries  of  similar  magnitude 
which  are  more  or  less  concentrated  in  particular  sections 
(iron  and  steel  industry,  textiles,  slaughtering  and  meat 
packing,  etc.). 

Since  1900  important  changes  have  taken  place  in  the 
lumber  industry.  In  1905  Washington  advanced  from 
fifth  to  first  place,  passing  Michigan,  Wisconsin,  Minne- 
sota and  Pennsylvania.  Louisiana  rose  from  ninth  to 
fourth  place,  while  Indiana  dropped  from  seventh  to  six- 
teenth and  Ohio  from  eighth  to  twenty-first  place. 

The  growth  of  the  industry  has  been  most  rapid  in  the 
Southwest  and  on  the  Pacific  coast,  while  a substantial  de- 
cline has  taken  place  in  the  Great  Lake  region.  The  Cen- 
tral States  also  have  shown  a decrease  in  their  output,  par- 
ticularly in  the  logging  industry,  the  raw  material  of  which 
is  standing  timber;  this  is  due  to  a very  natural  cause:  the 


156 


SIMON  LITMAN 


practical  exhaustion  of  merchantable  timber  in  continuous 
bodies  in  these  states.  The  as  yet  comparatively  impor- 
tant sawmill  and  planing-mill  industries  of  Ohio,  Indiana, 
etc.,  are  supplied  with  material  from  Kentucky,  West  Vir- 
ginia and  other  neighboring  states.  Lower  grades  of 
timber  are  being  cut  in  ever-increasing  quantities. 

Another  significant  development  has  been  the  general 
increase  in  the  value  of  log  stumpage;  in  some  instances 
the  increase  has  been  very  large;  it  extends  to  all  species 
of  timber  and  is  due,  not  so  much  to  the  present  shortage 
in  the  supply  of  material  as  to  the  fact  that  the  available 
timber  land  is  being  rapidly  bought  up  and  withdrawn 
from  the  market  in  anticipation  of  the  time  when  the  sup- 
ply will  not  equal  the  demand. 

The  bulk  of  the  lumber  product  of  the  United  States 
is  consumed  at  home.  However,  there  has  been  an  in- 
crease in  the  value  of  unmanufactured  woods  exported.  It 
rose  from  $11,000,000  in  1870  to  $45,000,000  in  1905;  rec- 
koned in  the  percentage  of  total  production  the  exports 
constituted  5.3  per  cent  in  1870  and  7.8  per  cent  in  1905. 
The  most  marked  increase  has  been  in  the  exports  to  Eu- 
rope. Our  imports  consist  of  pine  lumber  from  Canada 
($22,000,000  in  1905),  and  of  cabinet  woods,  chiefly  ma- 
‘hogany,  from  Haiti,  Cuba,  Porto  Rico,  Mexico  and  Central 
American  States. 

Mineral  Resources. 

The  mineral  resources  of  the  United  States  are  abun- 
dant, accessible  and  widely  distributed.  Upon  their  abun- 
dance has  been  to  a very  large  extent  based  the  rapid  ex- 
pansion of  the  nation’s  industrial  life.  Just  as  the  United 
States  has  outranked  all  the  other  countries  in  the  produc- 
tion of  minerals,  so  also  has  it  outranked  them  in  all  those 
activities  which  are  created  and  supported  by  mineral 
wealth. 


TRADE  AND  COMMERCE 


157 


The  most  important  metallic  and  non-metallic  mineral 
products  of  the  United  States  are  coal,  iron,  copper,  clay, 
petroleum,  gold,  stone,  cement,  natural  gas,  lead  and  zinc. 
The  total  output  of  minerals  for  1907  exceeded  $2,000,000,- 
000,  as  compared  with  $365,000,000  in  1880,  $605,000,000 
in  1890  and  $1,107,000,000  in  1900.  These  figures  show  the 
extraordinary  rapidity  with  which  the  mineral  resources 
have  been  exploited  during  the  last  decades.  Of  the  grand 
total  fuels  (coal,  petroleum  and  natural  gas)  approximated 
$788,000,000,  structural  materials  (clay,  stone,  cement, 
lime,  etc.)  nearly  $306,000,000,  metallic  products  (iron,  cop- 
per, gold,  silver,  lead,  zinc,  aluminum,  tin,  etc.)  $903,000,- 
000.  The  rest  was  composed  of  abrasive  materials  (grind- 
stones, quartz,  emery),  chemical  materials  (phosphate 
rock,  salt,  sulphur,  borax),  pigments  (zinc  white,  barytes) 
and  other  miscellaneous  products  (glass  sands,  mineral 
waters,  precious  stones,  talc,  etc.). 

The  value  of  mineral  production  in  the  United  States 
as  compared  with  that  in  other  countries  is  indicated  by 
the  fact  that  during  1907  the  country  produced  63  per  cent 
of  the  world’s  petroleum,  55  per  cent  of  the  world’s  copper, 
52  per  cent  of  the  phosphate  rock,  46  per  cent  of  the  steel, 
43  per  cent  of  the  cement,  40  per  cent  of  the  iron  ore,  40  per 
cent  of  the  coal,  33  per  cent  of  the  lead,  30  per  cent  of  the 
silver,  27  per  cent  of  the  zinc  and  22  per  cent  of  the  world’s 
gold. 

The  mineral  beds  of  the  United  States  are  not  equally 
distributed  throughout  the  country.  Pennsylvania  has 
been  for  a long  time  and  is  yet  the  leading  state  in  the 
production  of  minerals,  nearly  one-third  of  the  mineral 
output  of  the  Union  coming  from  this  state;  but  the  centers 
of  production  shift  and  it  is  difficult  to  foretell  how  long 
our  banner  state’s  supremacy  will  last.  The  primacy  in 
quantity  of  petroleum  produced  passed  within  the  last  two 
years  from  Ohio  to  California  and  from  California  to  Okla- 


158 


SIMON  LITMAN 


lioma;  within  a year  (1907-8)  Colorado  has  taken  the  place 
of  Montana  in  silver,  and  Idaho  that  of  Missouri  in  lead. 

Our  most  important  coal-producing  states  are  Pennsyl- 
vania, Ohio,  West  Virginia,  Alabama,  Indiana,  Iowa  and 
Colorado;  the  largest  supplies  of  iron  ore  come  from  Min- 
nesota, Michigan  and  Alabama;  copper  is  mined  in  Mon- 
tana, Arizona  and  in  the  Lake  Superior  regions;  lead  in 
Idaho,  Colorado,  Utah  and  Missouri;  zinc  in  Missouri,  Kan- 
sas and  Colorado;  gold  in  Colorado,  California  and  Alaska; 
silver  in  Colorado,  Montana,  Utah  and  Idaho.  Mineral 
deposits  are  worked  in  other  parts  of  the  country,  but  the 
enumerated  states  lead  in  the  production. 

The  Iron  and  Steel  Industry. — In  1905  the  value  of  the 
products  of  our  iron  and  steel  industry  was  $906,000,000, 
as  compared  with  $207,000,000,  their  value  in  1870;  dur- 
ing the  same  period  the  output  in  tons  increased  from 
3,264,000  to  34,845,000,  or  more  than  tenfold.  Pennsyl- 
vania leads  in  the  production,  followed  by  Ohio  and  Illi- 
nois; in  1905  these  three  states  produced  78.5  per  cent  of  the 
total  value  of  the  country’s  output;  other  important  iron 
and  steel  producing  states  are  New  York,  Alabama  and 
New  Jersey. 

Textiles. 

The  census  reports  include  under  textiles  material 
which  provides  substantially  the  entire  clothing  of  the 
people  in  the  United  States,  the  only  exception  being  leath- 
er footwear,  the  hats  and  bonnets  of  women  and  the  sum- 
mer straw  hats  of  men.  Not  only  hosiery,  underwear  and 
material  for  all  the  outer  garments,  but  also  a large  class  of 
articles  of  purely  ornamental  value,  like  ribbons  and  laces, 
are  considered  under  the  category  of  textiles.  Under  tex- 
tiles are  included  also  carpets,  bed  coverings,  toweling,  etc. 
In  the  grouping  of  industries  according  to  the  value  of 
products,  “ textiles”  rank  third  ($2,147,000,000  in  1905), 
“food  and  kindred  products”  being  the  first  and  “iron  and 


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159 


steel  and  their  products”  second  in  rank.  If  we  consider 
the  number  of  wage-earners  employed,  textiles  occupy  the 
first  place;  in  1905  they  gave  employment  to  1,156,000 
hands. 

The  three  most  important  fibers  used  in  textile  manu- 
factures are  cotton,  wool  and  silk.  The  United  States  may 
be  ranked  first  amongst  silk-manufacturing  countries,  sec- 
ond in  cotton  manufactures  (the  United  Kingdom  first)  and 
probably  fourth  in  woolen  fabrics  (the  United  Kingdom, 
France  and  Germany  being  the  three  leaders).  Our  flax 
and  jute  industries  are  not  of  great  importance. 

The  most  significant  fact  in  our  textile  manufactures  is 
the  continued  growth  of  the  cotton-manufacturing  indus- 
try in  the  southern  states.  As  our  census  bulletin  on  tex- 
tiles for  1905  puts  it,  “no  fact  relating  to  the  industrial 
progress  of  the  country  is  more  interesting,  more  impor- 
tant or  more  significant  to  the  student  of  social  and  eco- 
nomic conditions  in  the  United  States  than  the  vigor,  the 
persistency  and  the  success  of  the  South  in  introducing 
this  branch  of  manufacture.  Combined  with  the  growth 
in  the  South  of  the  manufacture  of  iron  and  steel  it  marks 
an  industrial  revolution  in  one  part  of  the  country.”  The 
progress  of  the  southern  states  may  be  judged  from  the 
fact  that  within  a brief  period  of  five  years,  between  1900 
and  1905,  they  increased  the  number  of  their  spindles  from 
4,298,000  to  7,508,000;  the  increase  in  the  New  England 
States  for  the  same  period  has  been  from  12,851,000  to 
13,911,000.  The  cotton-manufacturing  industry  has  never 
been  established  on  a large  basis  either  in  the  middle  or 
in  the  western  states.  Massachusetts,  Rhode  Island,  New 
Hampshire  and  Connecticut  lead  as  cotton  manufacturers 
in  the  Northeast,  North  Carolina  and  Georgia  in  the  South. 

Southern  mills  have  the  advantage  of  raw  cotton  at 
their  doors;  also  of  abundant  fuel  and  cheap  labor;  unfortu- 
nately, some  of  the  southern  superiority  is  based  upon  an 
extensive  use  of  child  labor.  Southern  manufactures  find 


SIMON  LITMAN 


160 


a market  near  by,  ever-decreasing  quantities  of  calico, 
gingham,  shirtings  being  shipped  from  New  England  south- 
ward. 

American  spinners  produce  a much  larger  quantity  of 
coarse  and  medium  yarns  and  a much  smaller  amount  of 
fine  fabrics  than  the  spinners  of  Great  Britain,  Germany 
or  France. 

The  export  of  cottons  from  the  United  States  is  grow- 
ing, although  our  position  as  an  exporter  of  these  tissues 
is  far  from  being  satisfactory.  China  is  the  largest  con- 
sumer of  our  cotton  fabrics. 


Miscellaneous  Manufactures. 

In  1905  the  value  of  chemicals  and  allied  products  ex- 
ceeded $1,000,000,000,  half  of  which  amount  was  manufac- 
tured in  the  states  of  New  York,  Pennsylvania,  New  Jersey, 
Ohio  and  Illinois. 

The  making  of  vehicles  for  land  transportation  aggre- 
gates $640,000,000;  the  leading  producers  are  Pennsylvania, 
New  York,  Illinois  and  Indiana. 

The  tanning,  currying  and  finishing  of  leather  is  car- 
ried on  most  extensively  in  the  states  of  Pennsylvania, 
Massachusetts,  Wisconsin,  New  York  and  New  Jersey. 

The  production  of  boots  and  shoes  is  mainly  concen- 
trated in  New  England,  particularly  in  the  State  of  Massa- 
chusetts. New  England’s  manufactures  are  more  than 
half  the  total  output  by  the  United  States.  New  York, 
Ohio  and  Missouri  are  next  in  importance  as  producers 
of  leather  footwear. 

New  York,  Massachusetts,  Maine,  Wisconsin  and  Penn- 
sylvania lead  in  the  making  of  wood  pulp  and  paper;  the 
value  of  this  industry’s  products  increased  from  about 
$10,000,000  in  1850  to  over  $188,000,000  in  1905. 

A remarkable  growth  has  taken  place  in  the  printing 
and  publishing  business.  In  1905  it  reached  nearly  $500,- 
000,000  as  compared  with  $15,000,000  in  1850;  this  shows 


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161 


an  enormous  increase  in  the  amount  of  books  and  period- 
icals, as  well  as  an  increase  in  the  use  of  printed  matter 
for  business  and  social  purposes. 

The  production  of  ready-made  clothing  is  one  of  our 
most  important  industries.  In  a grouping  of  ten  manu- 
factures which  in  1905  reported  a value  of  products  ex- 
ceeding $300,000,000,  clothing  occupied  the  fifth  place,  only 
four  industries  showing  a higher  value  of  products,  these 
being  slaughtering  and  meat  packing,  iron  and  steel,  foun- 
dries and  machine  shops,  flour  and  grist  mills;  the  five  in- 
dustries following  the  production  of  clothing  were  lumber 
and  timber,  printing  and  publishing,  cotton  manufactures, 
woolen  manufactures,  the  making  of  boots  and  shoes.  The 
total  value  of  products  contributed  by  this  group  of  ten 
industries  amounted  to  $6,165,000,000  or  41.5  per  cent  of 
the  entire  value  of  products  contributed  by  all  of  the  in- 
dustries embraced  in  our  census  classification.  Some  of 
our  other  important  manufactures  are  furniture  making, 
shipbuilding,  production  of  rubber  goods,  manufacture  of 
structural  material  (cement,  etc.),  clay  manufactures 
(bricks,  sewer  and  drain  pipes,  etc.),  glass  making. 

X.  THE  COMMERCIAL  RELATIONS  OF  THE  UNITED 
STATES  WITH  FOREIGN  COUNTRIES. 

The  United  States’  exports  are  much  larger  than  its 
imports;  in  this  respect  it  differs  materially  from  other 
great  commercial  nations:  Great  Britain,  Germany  and 
France,  whose  balance  of  trade  shows  each  year  an  excess 
of  imports  over  exports.  The  latter  countries  have  large 
and  manifold  investments  and  an  insignificant  indebted- 
ness abroad;  they  can,  therefore,  draw  upon  foreign  coun- 
tries for  the  needed  supplies  of  raw  materials  and  food- 
stuffs without  any  drain  upon  their  finances.  The  visible 
cargoes  entering  their  ports  represent  payments  of  debtor 
nations.  Hundreds  of  millions  of  dollars  are  thus  paid  to 
their  capitalists  who  own  stocks  and  bonds  in  various  rail- 

B— IV— 11 


162 


SIMON  LITMAN 


way  and  industrial  enterprises  in  every  part  of  the  world, 
to  their  shipowners,  whose  steamers  and  sailing  vessels 
ply  every  sea  and  carry  most  of  the  foreign  trade  cargoes 
to  their  insurance  companies,  etc. 

The  United  States  on  the  other  hand  has  little  capital 
invested  abroad.  Until  recently  all  of  its  accumulated 
wealth  was  able  to  find  exceedingly  profitable  investments 
at  home  in  the  development  of  its  natural  resources;  it 
owes  vast  sums  of  money  to  foreign  investors ; it  has  prac- 
tically no  merchant  marine  engaged  in  international  trade 
and  it  spends  through  its  tourists  fortunes  in  Europe  and 
in  other  parts  of  the  world.  Most  of  its  foreign  trade  sur- 
plus, therefore,  does  not  create  a favorable  balance  in  its 
favor,  but  merely  offsets  the  payments  due  to  foreigners; 
it  represents  also  its  gradually  increasing  investments  of 
capital  in  foreign  countries. 

How  true  this  is  may  be  seen  from  a study  of  the  move- 
ment of  gold  from  and  into  the  United  States.  Notwith- 
standing a “ favorable”  balance  of  trade  in  the  last  few 
decades  reaching  lately  from  $450,000,000  to  $600,000,000 
a year,  the  excess  of  gold  imports  over  gold  exports  was 
never  higher  than  about  sixty  million  dollars  a year;  dur- 
ing the  same  period  American  bank  balances  abroad  have 
not  been  growing  very  rapidly  either.  When  in  the  fiscal 
year  just  ended  (June  30,  1909),  the  exports  dropped  off 
without  a corresponding  decrease  in  imports,  leaving  the 
country  with  a trade  balance  of  about  $350,000,000  in  its 
favor,  it  was  compelled  to  ship  over  $47,000,000  of  gold  to 
pay  for  imports. 

It  is  well  to  remember  that  there  is  nothing  in  itself 
apprehensive  either  in  the  excess  of  imports  over  exports 
or  exports  over  imports;  a study  of  the  actual  conditions 
under  which  such  excesses  occur  is  necessary  in  order  to 
arrive  at  a.  correct  judgment. 

The  exports  from  the  United  States  consist  mostly  of 
raw  and  semi-finislied  commodities  and  of  breadstuffs  and 


TRADE  AND  COMMERCE  163 

foodstuffs,  either  in  crude  conditions  or  partly  manufac- 
tured. 

Taking  the  last  fiscal  year  (1909)  as  an  illustration  we 
find  that  crude  materials  for  manufacture  represented 
about  32  per  cent  of  our  total  exports,  their  value  being 
$521,000,000;  raw  cotton  was  the  leading  item  on  the  list, 
it  was  valued  at  $417,000,000,  an  increase  of  about  75  per 
cent  over  the  valuation  in  1900. 

Last  year  we  exported  foodstuffs  to  the  value  of  $438,- 
000,000  (about  27  per  cent  of  the  total);  amongst  foods 
exported,  meat  and  dairy  products  occupied  the  first  place, 
with  breadstuffs  as  a close  second.  The  latter  led  our 
exports  in  1900;  their  value  fell  from  $262,000,000  in  that 
year  to  $160,000,000  in  1909.  The  decline  is  indicative  of 
the  future  development  of  our  foreign  trade.  We  are  ap- 
proaching the  time  when  most  of  the  foodstuffs  now  ex- 
ported from  this  country  will  be  retained  for  home  con- 
sumption. Our  area  available  for  tillage  has  been  nearly 
all  occupied ; on  the  other  hand,  our  population  grows  rapid- 
ly and  tends  towards  concentration  in  industrial  and 
commercial  centers.  This  condition  will  necessarily  lead 
to  a decrease  in  the  exports  of  agricultural  products,  which 
for  so  long  a time  have  sustained  the  foreign  credit  of  the 
United  States  and  have  kept  its  balance  of  trade  favor- 
able. 

Our  exports  of  semi-manufactured  products  equalled 
$230,000,000,  leaving  $442,000,000  or  27  per  cent  of  the  total 
for  manufactures  ready  for  consumption.  The  latter 
amount  represented  but  a small  fraction  (not  over  12| 
per  cent)  of  all  the  manufactures  entering  into  interna- 
tional trade;  this  shows  clearly  in  what  direction  our  en- 
ergy must  be  applied  if  we  wish  to  keep  our  commerce 
at  the  high  mark  which  it  has  reached. 

Turning  to  the  list  of  imports  we  find  that  the  United 
States  receives  large  quantities  of  foodstuffs.  Most  of  the 
foods  imported  are  not  necessities,  but  more  or  less  lux- 


164 


SIMON  LITMAN 


uries,  comprising  such  articles  as  coffee,  sugar,  cocoa, 
fruits  and  nuts,  spices  and  condiments,  etc.;  they  repre- 
sented in  1909  over  25  per  cent  of  the  total  imports  into 
this  country. 

The  imported  manufactures  ready  for  consumption  are 
mostly  commodities  of  superior  quality  and  finish,  articles 
of  taste  and  of  beauty  or  wares  embodying  the  latest  dic- 
tates of  fashion;  high-grade  silks  and  other  textiles,  gloves, 
perfumery,  diamonds,  ribbons,  embroidery,  millinery  are 
some  of  the  finished  goods  received  from  abroad.  In  1909 
the  combined  value  of  these  imports  reached  27  per  cent 
of  the  total. 

The  remainder  of  our  imports  (about  48  per  cent)  con- 
sisted in  1909  of  crude  materials  and  other  goods  for  use 
in  manufactures;  amongst  these  we  find  raw  silk,  hides, 
rubber,  chemicals,  dyes,  etc. 

In  1909  sugar  was  the  largest  single  item  of  import, 
followed  by  manufactured  silks  and  coffee;  hides,  skins  and 
» India  rubber  were  next  in  importance. 

Europe  is  our  best  customer.  In  1909  it  took  from  us 
goods  to  the  value  of  $1,147,000,000.  This  commerce  with 
Europe  grew  without  any  serious  efforts  on  the  part  of 
the  American  people  to  foster  it.  The  empty  storehouses 
of  Europe  'seek  our  wheat  and  flour,  and  their  mills  and 
factories  buy  eagerly  the  products  of  our  cotton  planta- 
tions and  our  copper  mines  because  of  the  large  profits 
they  make  on  their  original  investments.  The  United 
Kingdom  is  our  leading  purchaser;  our  exports  to  this 
country  exceed  $500,000,000  a year  and  are  more  than 
double  of  our  exports  to  Germany,  our  next  best  buyer. 
Our  sales  to  France  equalled  in  1909  about  $109,000,000, 
and  to  Netherlands  $95,000,000;  in  the  case  of  the  latter 
country  the  figures  are  somewhat  misleading  as  a large 
part  of  their  imports  are  transshipments,  mostly  to  Ger- 
many. A study  of  our  export  trade  to  other  European 
countries  shows  that  Italy,  with  a gradual  development  of 


TRADE  AND  COMMERCE 


165 


its  manufacturing  industries,  has  been  taking  an  ever-in- 
creasing  amount  of  American  raw  materials;  the  value  of 
its  imports  from  the  United  States  rose  from  $36,700,000 
in  1900  to  $58,500,000  in  1909.  Our  exports  to  Belgium 
were  $45,000,000.  The  least  important  of  our  European 
customers  are  the  agricultural  states  of  Europe:  Spain, 
Russia,  Austria-Hungary,  etc. 

In  1909  North  America  imported  our  merchandise  to 
the  value  of  $310,000,000,  the  remaining  continents  having 
taken  a comparatively  small  share  of  our  exports:  South 
America  $76,500,000,  Asia  $71,800,000,  Oceania  $41,390,- 
000  and  Africa  $17,035,000.  Considering  the  vast  quanti- 
ties of  manufactured  goods  imported  by  these  continents 
and  our  dependence  upon  them  for  many  of  our  imports, 
the  showing  is  very  poor. 

In  1909  our  imports  from  Europe  were  valued  at  $654,- 
322,000,  from  Asia  at  $197,548,000,  from  South  America  at 
$163,878,000,  from  Oceania  at  $27,062,000  and  from  Africa 
at  $15,108,000. 

The  United  States  has  but  a small  share  in  the  trade 
of  the  oriental  countries,  whose  imports  amount  to  nearly 
two  billion  dollars  each  year.  More  than  one  billion  dol- 
lars’ worth  of  these  imports  is  represented  by  goods  which 
the  United  States  could  easily  supply.  The-  Orient  has 
been  taught  to  use  many  occidental  products;  it  imports 
textiles,  iron  and  steel  manufactures,  household  utensils, 
agricultural  implements,  foodstuffs;  the  market  is  large 
and  because  of  the  size  of  the  tropical  and  subtropical  pop- 
ulation and  the  wealth  of  natural  resources  which  it  can 
send  in  exchange  for  purchases,  it  is  a market  full  of  pos- 
sibilities. The  market  occupies  a vast  section  of  the  world 
stretching  westward  from  southern  China  in  Asia  to  Mo- 
rocco in  Africa,  a section  covering  the  greater  part  of  the 
two  continents  and  containing  within  its  confines  more 
than  half  of  the  world’s  population.  With  the  exception 
of  trade  with  Japan  and  northern  China,  whose  geographic 


166 


SIMON  LITMAN 


proximity  to  our  western  shores  gives  us  an  advantage  oil 
distance,  the  United  States  supplies  but  one  per  cent  of 
the  total  imports  of  the  Orient. 

Many  reasons  have  been  advanced  to  explain  the  suc- 
cess of  the  European  and  the  failure  of  the  American  busi- 
ness men  in  the  oriental  commerce;  the  most  important 
of  these  are  as  follows:  our  manufacturers  and  merchants 
do  not  study  the  habits  and  requirements  of  the  people  in 
the  Orient,  the  usages  and  the  local  conditions  of  their 
markets ; they  offer  for  sale  surplus  products  made  for  the 
cities  and  farms  of  the  United  States,  but  entirely  unsuited 
for  tropical  regions.  European  manufacturers  send  agents 
into  these  countries  to  learn  the  needs  and  wishes  of  their 
prospective  customers;  they  establish  banks  which  facili- 
tate the  extension  of  long  credits  demanded  by  tropical 
tradesmen;  they  connect  by  direct  steamship  lines  their 
shipping  centers  with  the  harbors  of  the  Orient  and  thus 
are  able  to  deliver  goods  quickly  and  on  time.  On  the 
other  hand,  our  merchants  enter  the  field  with  no  agents 
to  represent  them,  no  banks  to  permit  the  opening  of  ac- 
counts and  the  granting  of  credits,  no  steamers  to  allow 
a speedy  fulfillment  of  contracts. 

In  packing  goods  our  shippers  disregard  the  possible 
effects  of  long  sea  voyages  and  of  rough  handling  of  mer- 
chandise in  countries  where  labor-saving  devices  and  ma- 
chinery are  unknown  and  where  the  most  primitive  meth- 
ods of  transportation  exist.  Many  of  our  consignments 
must  be  subjected  to  repacking  at  the  place  of  arrival,  on 
the  shore,  because  the  boxes  and  bales  in  which  they  come 
are  too  heavy  and  bulky  to  be  moved  farther  inland;  fre- 
quently our  products  come  in  a condition  unfit  for  con- 
sumption, because  proper  precautions  are  not  taken  to  pro- 
tect them  against  atmospheric  and  other  harmful  influ- 
ences. 

We  send  English  circulars,  quoting  prices  in  dollars 
and  cents  for  quantities  expressed  in  American  weights 


TRADE  AND  COMMERCE 


167 


and  measures  and  we  expect  that  these  circulars  will  he 
read  by  people  unfamiliar  with  our  language  and  our 
monetary  system.  These  circulars  are  discarded  as  soon 
as  they  reach  their  destination. 

Many  other  reasons  of  a similar  nature  could  be  as- 
signed for  our  failures  to  win  markets  where  markets  must 
be  won,  won  in  the  face  of  competition.  The  remedies  are 
near  at  hand. 

1.  Our  business  firms  should  be  personally  represented 
by  agents  whose  object  should  be  the  study  of  local  con- 
ditions and  peculiarities;  then  our  selling  campaigns  could 
be  more  intelligently  and  more  vigorously  conducted. 

2.  We  should  be  willing  to  grant  a more  liberal  sys- 
tem of  credits,  a system  more  in  keeping  with  require- 
ments in  the  desired  market. 

3.  We  should  send  more  complete,  more  varied  and 
better  lines  of  goods. 

4.  Careful  attention  should  be  given  to  proper  pack- 
ing. 

5.  Shipping  directions  should  be  strictly  complied 
with. 

6.  We  must  provide  better  means  of  communication 
and  transportation. 

7.  Our  advertising  matter  should  be  written  in  the 
language  of  the  people  for  whom  it  is  intended. 

BIBLIOGRAPHY. 

Governmental  Publications. 

Department  of  Commerce  and  Labor. 

The  Department  of  Commerce  and  Labor  publishes  most  of  the  information 
bearing  upon  industry  and  commerce.  The  publications  are  issued  by  several 
bureaus,  or  divisions  of  the  department  and  include  the  following: 

The  Annual  Report  on  the  Foreign  Commerce  and  Navigation  of  the  United 
States,  containing  a mass  of  detailed  information  as  to  the  movement  of  mer- 
chandise into  and  from  the  United  States  and  in  Interstate  Commerce ; 

A monthly  Summary  of  Commerce  and  Finance  in  which  besides  the  regular 
statistical  data  may  be  found  valuable  monographs  on  special  topics,  such  as : 
Great  Canals  of  the  World,  Colonial  Administration,  Commercial  China , Com- 
viercial  Japan,  Commercial  Cuba,  Warehousing  Industry,  etc.; 

Statistical  Abstract  of  the  United  States; 


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Consular  Reports:  (a)  Daily,  of  special  value  to  business  men  and  to  news- 
papers; (b)  Monthly,  being  a reprint  of  those  daily  bulletins  which  are  consid- 
ered of  more  permanent  value;  the  reports  contain  also  communications  which 
do  not  find  their  way  into  the  daily  bulletins;  (c)  Special  Consular  Reports; 
some  of  the  topics  treated  are  on  Winning  Foreign  Markets,  Industrial  Educa- 
tion, Tariffs,  Merchant  Marines,  etc.; 

The  Census.  In  1902  a permanent  Census  Bureau  was  organized  which  issues 
each  year  a number  of  bulletins;  most  of  those  recently  published  deal  with  the 
manufacturing  Census  of  1905.  The  bureau  published  comprehensive  volumes  on 
Mines  and  Quarries,  Telegraphs  and  Telephones , Street  and  Electric  Railways, 
etc.  A general  census  of  the  United  States  is  taken  every  ten  years;  it  is  a 
gigantic  investigation  covering  every  step  in  the  social  and  economic  life  of  the 
Nation ; 

Publications  of  the  Bureaus  of  Labor  and  of  Immigration; 

Bulletins  and  Reports  of  Fisheries. 

Other  Departments  of  the  Federal  Government. 

The  Mineral  Resources  of  tne  United  States  is  issued  by  the  Geological  Sur- 
vey of  the  Department  of  the  Interior. 

Year  Book  of  the  Department  of  Agriculture,  published  annually,  contains 
valuable  articles  on  agricultural  subjects  from  a technical  and  from  a commercial 
point  .of  view. 

The  various  bureaus  and  divisions  of  the  Department  of  Agriculture,  such 
as  the  Bureau  of  Animal  Industry,  of  Plant  Industry,  of  Soils,  of  Entomology, 
the  Forest  Service,  the  Bureau  of  Statistics,  issue  numerous  bulletins  and  reports ; 
they  discuss  such  topics  as : Useful  Fiber  Plants , Beet  Sugar,  Cotton,  etc. 

Reports  of  the  Bureau  of  Insular  Affairs  of  the  War  Department  deal,  amongst 
other  things,  with  economic  conditions  in  the  Philippines  and  Porto  Rico. 

The  Report  of  the  Secretary  of  the  Navy  contains  information  about  our 
Merchant  Marine. 

The  Annual  Report  of  the  Postmaster  General  considers  the  transmission  of 
commercial  intelligence,  the  parcels  post  and  the  free  rural  delivery,  second  class 
mail  matter,  etc. 

Congress. 

Amongst  Congressional  Documents  of  special  interest  are  the  Merchant 
Marine.  Commission  Report,  published  in  1905,  and  the  Report  of  the  Industrial 
Commission  (1900-1902)  ; the  latter  is  a most  thorough  piece  of  work  in  19  vol- 
umes, and  shows  clearly  the  economic  status  of  the  United  States  at  the  close 
of  the  nineteenth  century.  Vol.  VI  deals  with  the  distribution  of  farm  products  and 
Vol.  XIX  (the  Final  Report),  gives  an  excellent  resume  of  the  laborious  and 
tedious  investigation. 

Bulletins  of  the  International  Bureau  of  the  American  Republics  are  of  great 
value  to  those  interested  in  the  trade  conditions  of  Mexico  and  of  Central  and 
South  American  republics.  The  information  submitted  is  most  carefully  com- 
piled and  unbiased;  it  aims  to  be  accurate  and  up-to-date.  Our  Secretary  of 
State  is  the  ex-officio  chairman  of  the  bureau  and  its  Governing  Board  is  com- 
posed of  ambassadors  and  other  diplomatic  representatives  of  the  Latin-American 
republics. 

The  official  publications  of  the  British  Government  cover  more  or  less  the 
same  ground  as  the  works  published  in  the  United  States;  the  most  interesting 
of  these  publications  for  the  student  of  commerce  are : the  Miscellaneous  and 
Annual  Series  of  the  Diplomatic  and  Consular  Reports  of  the  British  Foreign 
Office,  the  annual  reports  on  the  Trade  of  the  United  Kingdom  with  Foreign 
Countries  and  British  Possessions,  the  Statistical  Abstract  for  the  United  King - 


TRADE  AND  COMMERCE  169 


dom,  the  British  Statistical  Abstract  for  Foreign  Countries,  and  the  publications 
of  the  British  Board  of  Trade;  the  work  of  the  last  corresponds  to  that  of  the 
Department  of  Commerce  and  Labor  in  the  United  States. 

General  Works,  Manuals,  Special  Treatises. 

There  is  a number  of  texts  on  Political  and  on  Commercial  Geography; 
of  the  first,  the  best  single  volume  is  that  of  H.  R.  Mill,  The  International  Geog- 
raphy (New  York,  1907);  of  the  second:  Chisholm,  Handbook  of.  Commercial 
Geography  (London,  1909).  The  text  books  on  economic  geography,  published 
in  the  United  States,  are  all  high-school  manuals;  Adams’  Commercial  Geography 
(New  York,  1909),  and  Trotter’s  Geography  of  Commerce  (New  York,  1906) 
are  perhaps  of  somewhat  more  advanced  character  than  the  books  of  Redway,  of 
Gannett,  Garrison  and  Houston  or  of  Rocheleau. 

The  general  aspects  of  commerce  in  the  past  are  brought  out  most  clearly 
and  systematically  in  Clive  Day’s,  A History  of  Commerce  (New  York,  1908), 
which  is  the  best  general  treatise  on  the  subject,  bringing  the  discussion  down 
to  the  beginning  of  the  twentieth  century.  W.  C.  Webster’s , A General  History  of 
Commerce  (Boston,  1903),  covers  the  same  ground. 

Commercial  Products,  their  Origin,  Geographic  Distribution, 
Preparation  and  Uses: 

Freeman  and  Chandler ; World’s  Commercial  Products  (London,  1907) ; only 
products  of  vegetable  origin  are  considered. 

Ch.  R.  Toothaker : Commercial  Raw  Materials  (Boston,  1906). 

/.  Yeats:  The  Natural  History  of  the  Raw  Materials  of  Commerce  (London, 
1872). 

Communication  and  Transportation: 

J.  Russell  Smith:  The  Ocean  Carrier  (New  York,  1908). 

J.  Russell  Smith:  Organization  of  Ocean  Commerce  (Philadelphia,  1905). 

Emory  R.  Johnson:  Ocean  and  Inland  Water  Transportation  (New  York, 
1906). 

Emory  R.  Johnson:  Railway  Transportation  (New  York,  1909). 

D.  Owen:  Ports  and  Docks  (London,  1903). 

Altmaier:  Commercial  Correspondence  (New  York,  1904). 

Resources  and  Economic  Activities  of  the  United  States: 

Pierre  Leroy  Beaulieu:  The  United  States  in  the  Twentieth  Century  (New 
York,  1907).  A thoughtful  digest  of  the  XII  Census  by  a French  economist;  it 
brings  out  many  valuable  data,  contained  in  our  official  reports,  and  draws  inter- 
esting conclusions. 

W.  R.  Lawson:  American  Industrial  Problems  (New  York,  1903.)  A sug- 
gestive review  of  the  various  factors  which  have  contributed  to  the  industrial 
and  commercial  growth  of  the  country,  followed  up  by  a consideration  of  a few 
typical  industries,  from  the  British  viewpoint. 

The  Making  of  America  (Philadelphia,  1901-6).  A compilation  of  articles 
by  various  writers,  in  most  instances  authorities  on  the  subjects  they  treat.  Vol. 
IV  deals  with  Trade  and  Commerce,  Vol.  V with  Agriculture,  Vol.  VI  with 
Mining  and  Metallurgy. 

One  Hundred  Years  of  American  Commerce,  edited  by  Chas.  Depew  (New 
York,  1895),  in  two  volumes;  similar  in  character  to  the  preceding  work. 

One  of  the  best  books  for  reference  purposes  is  the  annually  issued  States- 
man’s■ Year  Book ; it  gives  the  latest  available  data  as  to  the  area,  population, 
shipping,  production  and  commerce  of  every  country  in  the  world. 

Very  suggestive  for  the  student  of  foreign  commerce  are  F.  A.  Vanderlip’s, 
Business  and  Education  (New  York,  1907),  and  Harold  Bolce’s,  The  New  Inter- 
nationalism (New  York,  1907). 


170 


SIMON  LITMAN 


Technical  Side  of  Modern  Business;  Forms  and  Practice: 

Hooper  and  Graham:  Modern  Business  Methods  (London,  1904),  Vol.  T. 
Home  Trade,  Vol.  II.  Import  and  Export  Trade. 

Gambaro  and  Gault ; Lessons  in  Commerce  (London,  1904). 

Cordingley : A Counting  House  Guide  (London,  1904). 


